Problem
Derive the steady-state population size: ??t+1 = ??t = ??ss , the steady-state land per capita: ??t+1 = ??t = ??ss and the steady-state income per capita: yt+1 = ??t = ??ss?
Starting at the steady-state solution, explain the short-run and the long-run effects resulting from a one-time permanent reduction in y.