This statement is true. The Producer Price Index (PPI) is based on prices paid for supplies and inputs by producers of goods and services. The PPI in general has increase over time representing that the cost of living has increased over time.

Why does this graph show an increase in income?

a. area a + c is greater than area b + c
b. area b + c is greater than area a + b
c. area a + b is greater than area b + c
d. area b + c is equal to area a + b

Laissez-faire is an economic:

A. theorem because it is the logical conclusion of a model with carefully stated relationships among variables. B. precept because it is the logical conclusion of a model with widely held assumptions. C. theorem because it is based on deductive analysis of a model that is based on assumptions. D. precept because it is based on a model and normative judgments about the relevance of the model to the real world.