In the short-run, what are wages and other resource costs such as rent and raw materials typically considered?

In the short run, wages and other resource costs such as rent and raw materials are typically considered fixed or sticky. This characterization arises because, in the short run, many costs cannot be readily adjusted in response to changes in demand or output levels. For example, companies may have set wage agreements, lease contracts for their facilities, or long-term contracts for raw materials that are not easily alterable. Consequently, these costs remain relatively stable even as production fluctuates.

The concept of "stickiness" also relates to the idea that wages, in particular, do not adjust immediately to changes in market conditions. Employers may be reluctant to cut wages, fearing loss of employee morale or productivity, meaning that these costs can resist changes despite shifts in the economy. Recognizing this sticky or fixed nature of costs is key to understanding short-run aggregate supply dynamics and how economies react to changes in demand.