When we solve for steady state, can we assume that the total output is 1?

[jpfeifer]

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Is this steady state assumption right?

Sometimes we set the average TFP such that output is normalized to 1 in steady state (i.e. y=af(\cdot) s.t. y=1). Nonetheless in my model, the labor endowment is also normalized to 1 (i.e. unemp. + out\;of\;labor + labor=L=1), is that right? Thanks!!