Which of the following is not a theoretical conclusion of New Classical Macro-economics ?

New Classical macroeconomics assumes that economic agents form rational expectations and that all markets, including the labour market, are competitive auction markets where flexible wages and prices clear continuously. Under the policy ineffectiveness proposition, anticipated demand-management policies have no effect on real output and employment. Characterizing the labour market as a long-term contract market with sticky nominal wages is a feature of New Keynesian economics, not New Classical macroeconomics.