In the AD-AS model with SRAS included,prices and wages are assumed to be perfectly flexible in the short run.

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In the AD-AS model with SRAS included, prices are assumed to be sticky in the short run due to factors such as menu costs and imperfect information, while wages are assumed to be partially flexible in the short run due to wage contracts and social norms. This is why the SRAS curve is upward-sloping but not vertical like the LRAS curve.

In the AD-AS Model with SRAS Included,prices and Wages Are