Consider a numerical example of the Solow model: Assume that n=0.2 s=0.3 d=0.1 F(K,N)=K12N12 Initially, in period t=0, that z=3 N=1 and the economy is in a steady state: Suppose that at t=1, total factor productivity falls to z=1 and then returns to  z=3 for periods t=2,3,4.... What is the value of per person aggregate output at period t=1?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Consider a numerical example of the Solow model:

Assume that

n=0.2

s=0.3

d=0.1

F(K,N)=K12N12

Initially, in period t=0, that

z=3

N=1

and the economy is in a steady state:

Suppose that at t=1, total factor productivity falls to z=1

and then returns to 

z=3 for periods t=2,3,4....

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

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