If this is for b) then you are still getting ahead of yourself. You only need to perform a simple matrix multiplication of A and x_{0} to get x_{1}. In this model this is, by definition, how the state for one generation is advanced to the state for the next generation. If you were to calculate, say, the 10th generation you would have to do the multiplication 10 times to get to x_{10}. By the way, it can be instructive to plot how the state develops over time, especially in order to prepare yourself for part d) and e).
