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ptsneves
on Oct 17, 2020
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Baumol Effect
I think the issue is that you measure productivity as in quantitative physical output instead of in value as driven by supply and demand. Absolute value increases due to inflation even though the supply/demand ratio is the same.
JumpCrisscross
on Oct 18, 2020
[–]
>
Absolute value increases due to inflation
For a meaningless definition of absolute, where it coïncides with “nominal,” yes.
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