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Which of the following correctly indicates a limitation of the self-correction mechanism assumed by rational expectations theory and new classical economists? Multiple choice question. Nominal

Which of the following correctly indicates a limitation of the self-correction mechanism assumed by rational expectations theory and new classical economists? Multiple choice question. Nominal wages typically do not immediately fall in response to a decrease in the price level. Nominal wages do not eventually respond to changes in price level. Nominal wages typically immediately rise in response to a decrease in the price level. Nominal wages typically do not fall in response to an increase in the price level

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