Traditional economic models assume that people form their expectations of future inflation by assuming present inflation will continue and if they are wrong simply adjust their expectations by some fraction of the difference between their original forecast and the actual inflation rate. Why is this not consistent with the assumptions of microeconomics?

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The Answer of Traditional economic models assume that people form their expectations of future inflation by assuming present inflation will continue and if they are wrong simply adjust their expectations by some fraction of the difference between their original forecast and the actual inflation rate. Why is this not consistent with the assumptions of microeconomics?

Traditional Economic Models Assume That People Form Their Expectations of Future