Using a model of imperfect competition, economist Daniel Trefler concluded that the North American Free Trade Agreement:
A) cost Canada more than 100,000 jobs that were never replaced.
B) caused no job loss in Canada.
C) caused Canada to lose 5% of jobs in manufacturing because Canadian tariffs had to be cut, but over time the trade agreement created higher productivity and more jobs to offset losses.
D) created new jobs in Canada from day one, as firms sold across the border and undercut U.S. firms.
Correct Answer:
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