As title says, is $y$ output per person in DSGE/RBC model? If so, why did macroeconomics decide not using Solow/Cobb-Douglas style of using full labor to characterize economy?
Model reference: http://crei.cat/people/gali/pdf_files/monograph/slides-ch3.pdf
For Gali's model, would $y$ represent output per worker? Or the whole output of the economy represented by representative household?
this for me seems to say that full maximum working time is assumed to be 1 with $h_t$ representing working time per labor unit. Thus it seems to be that $y$ is output per person..