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They are Canadian.
They are Canadians.

1. Are both sentences above correct?
2. I believe "Canadian" in the first sentence is used as an adjective like 'gorgeous' in saying "They are gorgeous", whereas in the second sentence, "Canadians" is used as a noun. Is this correct?

Please help. I would be very grateful.
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Yes, and yes.

Regards,
A-Emotion: stars
Comments  
Thanks so much for your quick and helpful response. I really appreciate it.