When the price of foreign inputs falls, the U.S. SRAS curve option (b)i.e, shifts rightward; which tends to reduce the U.S. price level.
<h3>
What is the SRAS curve?</h3>
We can understand how each firm in an economy reacts to price stickiness using the short-run aggregate supply curve (SRAS). The SRAS curve will have an upward slope when prices are stable. According to the SRAS curve, more output results from higher price levels.
The cost of labor, or wages, and the price of imported commodities that we use as inputs for other products are two other significant variables that may cause the SRAS curve to change in addition to energy prices.
A higher level of productivity causes the SRAS curve to move to the right because businesses can produce more output at all price points.
To know more about SRAS curve refer to: brainly.com/question/16909327
#SPJ4
Answer:
- The lessee reports a single amount of lease expense, which is equal to interest expense plus amortization expense, in its income statement.
- The lessee reports lease expense on a straight-line basis and the lessor reports lease revenue on a straight-line basis over the lease term.
Explanation:
An operating lease is basically renting an asset from a lessor where the lessee will pay a certain amount every period for the use of the asset.
This rent payment is equal to the interest expense plus amortization expense and will be reported in the income statement of the lessee as an expense.
This amount will also be reported on a straight-line basis for the duration of the lease term which means that even if rent increases, it will still have to be reported by the same amount over the lease period because the lease increase should have been taken into account already.
The lessor also reports lease revenue on a straight-line basis over the lease term.
Answer: both I and II are TRUE
Explanation:
Many firm experience a life cycle characterized by non-constant growth. And For non-constant growth firms, stock price is not equal to the present value of all future dividend payments.
