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by asdasdasdas5453
2067 days ago
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" This is pretty much what I wanted to write. How come productivity is measured in dollars when exchanging goods/services, but constant units when this Baumol thing comes up?" From an economist perspective there is no difference between the two. Money is just a convenient metric to be able to compare the value of multiple goods. You don't think of you salary as the power to buy X burgers or Y beers but really it is what it is. It is just easier to say I earn XXXX$. |
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If I get paid 100 for playing a concert on one day, but 120 another day, did I get more productive? Either way I produced the same number of concerts, but got 20% more payment.
Measured in concerts my productivity was the same. Measured in other goods it went up.