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Chapter 6: Q2. (page 250)

Argentina used to be as rich as Canada; now it鈥檚 much poorer. Does this mean that Argentina is poorer than it was in the past? Explain.

Short Answer

Expert verified

Argentina is poorer than Canada, but it has grown since the past levels.

Step by step solution

01

Explanation

Argentina and Canada were equally rich before World War II. After the Second World War, Canada achieved steady growth. However, Argentina lagged on the growth path due to political instability and extremely high inflation for a prolonged period. The growth rate was slowed over time.

Consequently, Argentina remained poorer as compared to Canada. However, it does not mean that the country has dropped from past levels. It has achieved growth from its previous levels.

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