At all points along the long-run aggregate supply curve,prices and wages are assumed to be perfectly flexible.

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The long-run aggregate supply (LRAS) curve is based on the assumption of perfect flexibility of wages and prices. This means that changes in demand or supply in any industry or sector will not cause a sustained deviation from the long-run equilibrium in the economy as a whole. In the long run, any changes in demand or supply will affect only the price level, and not the level of output or employment, as all factors of production can be adjusted to their optimal levels.

At All Points Along the Long-Run Aggregate Supply Curve,prices and Wages