Critics of the extreme rational expectations theory argue that wages and input prices do not adjust instantaneously.

Name: Critics of the extreme rational expectations theory argue that wages and input prices do not adjust instantaneously.
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Critics argue that in reality, there are often lags in the adjustment of wages and input prices, which makes it difficult for markets to immediately reach equilibrium as predicted by extreme rational expectations theory.

Critics of the Extreme Rational Expectations Theory Argue That Wages