If productivity is being measured in dollars or local currencies,exchange rate problems can distort the picture.

Question

Quizplus · Accepted Answer

Exchange rate fluctuations can lead to distortions in productivity measurements when using monetary units. This is because changes in exchange rates alter the value of a currency, which can affect the perceived productivity of a company or country when measured in different currencies. For example, a company operating in a weaker currency may appear more productive when measured in a stronger currency due to fluctuations in exchange rates, even if there has been no change in its actual output or efficiency.

If Productivity Is Being Measured in Dollars or Local Currencies,exchange