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The Self-Correcting Nature of a Malthusian Economy
Consider an agricultural economy where the average income per person decreases as the population grows. This economy is currently at a stable equilibrium, where the average income is just enough for the population to sustain itself (subsistence level). Explain the two distinct self-correcting processes that would occur if the population were to be (a) significantly higher than the equilibrium level, and (b) significantly lower than the equilibrium level. In your explanation, detail the chain of events that would eventually return the economy to its original stable state in both scenarios.
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