Consider a numerical example of the Solow model.

Assume that

n= 0.2

s= 0.3

d= 0.1

F(K,N) =K^1/2N^1/2

Initially, in periodt=0, that

z= 3

N= 1

and the economy is in a steady state

Suppose that att=1, total factor productivity falls to

z= 1

and then returns to

z= 3 for periodst=2, 3,4, ...

What is the value of theper-person aggregate output at period t= 1?

Consider a numerical example of the Solow model.

Assume that

n= 0.1

s= 0.2

d= 0.3

z= 4

F(K,N) = K^1/2N^1/2

Find the golden rule consumption per person.