4 ms·
" 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 t
by asdasdasdas5453 6y ago
" 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$.
- lordnacho 6y agoThe difference is the price, no? 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.