3. We will derive the AS-AD curve when there is technological progress. Suppose that the production function is given Y = AN: . What is the marginal cost of the firm to produce an additional unit of output? Explain . Assume firms set a markup over the marginal cost. Give the Price setting relation. Explain Suppose that the wage setting relation is given by W = AP&F(u, z), where A is expected productivity. Give the equilibrium condition for the labor market