Question: (1) Derive the demand function for type-i labor. (2) Derive the first-order conditions for Ct and Bt . 1 A New Keynesian Model Instead of

(1) Derive the demand function for type-i labor.

(2) Derive the first-order conditions for Ct and Bt.

1 A New Keynesian Model Instead of considering sticky prices in a New Keynesian model as we did in class, we consider sticky wages in this problem. A representatitve household has a continuum of members indexed by ie [0,1]. Each member con- sumes 0,; and supplies a differentiated type of labor th. The representative household maximizes its life-time utility 00 10 1 1+

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2. Value-oriented information and

1. Empirical or factual information,

1. To take in the necessary information,