In 1955 Per Capita Real GDP in Argentina Was $5,200

question 36

Essay

In 1955 per capita real GDP in Argentina was $5,200 per year and it grew at a constant growth rate of 1.5 percent per year. In Mexico, 1955 per capita real GDP was $3,600, but it grew at a constant rate of 2 percent (both in 2005 prices).What would per capita real GDP be in each country in 61 years (2015)? What about in 91 years (2045)? Will per capita real GDP in Mexico ever surpass that in Argentina? If so, when, approximately? What inference do we make about growth rates from this example?

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Definitions:

Negative Reinforcement

A behavioral principle where the removal of a negative stimulus strengthens a desired behavior.

Unpleasant Stimulus

A type of stimulus that is typically undesirable or uncomfortable, leading to negative reactions in individuals.

Positive Reinforcement

A process in behavior modification where a behavior is encouraged by rewarding it.

Flooding

a behavioral therapy technique used to treat phobias and anxiety disorders by exposing the patient to their fear at its most extreme intensity, without any gradual build-up.