The linear and nonlinear dynamical susceptibilities of a two-level system a
re calculated as it undergoes a transition to a decoherent state. Analogous
ly to the Glover-Tinkham-Ferrell sum rule of superconductivity, spectral we
ight in the linear susceptibility is continuously transferred from a finite
frequency resonance to nearly zero frequency, corresponding to a broken sy
mmetry in the thermodynamic limit. In this respect, the behavior of the pre
sent model (the Mermin model) differs from the spin-boson model. The third
order nonlinear susceptibility, corresponding to two-photon absorption, has
an unexpected nonmonotonic behavior as a function of the environmental cou
pling, reaching a maximum within the decoherent phase of the model. Both li
near and nonlinear susceptibilities may be expressed in a universal form.