Question: How to find aggregate demand for labour? what is aggregate supply of output? Question [2]: Just as for consumers, we can use the same trick

How to find aggregate demand for labour?

what is aggregate supply of output?

Question [2]: Just as for consumers, we can use the same trick on the rm side. Each rm has discontinuous demand / supply, but in aggregate we will get a nice function. Suppose there is a unit mass of rms (this language means that there are innitely many rms who are all miniscule and together add to 1; rms are treated like a realization of a continuous random variable, in effect.) Each rm can only hire zero or one unit of labour l, which has price w. Each rm has a technology indexed by 7 which determines the level of the output good. The technology for a given rm is y = 34. Suppose that the technology parameter 7 for the rms is distributed uniformly on the interval [0, 4]. The output y has price 1). Firms are prot maximizers. What is aggregate demand for labour? What is aggregate supply of output? (Careful, her the level of output varies for those rms that produce! So this is 'more complicated' than the previous part, where the level of labour was 1 for all rms that produce!)

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