According to the definitions in the textbook, the steady state in the simple Solow growth model occurs where:

Question

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The steady state in the simple Solow growth model occurs where ?f(K) = ?K. This is because in the steady state, capital is not growing, so the change in capital is zero. The change in capital is equal to investment minus depreciation, so in the steady state, investment must be equal to depreciation. The depreciation rate is equal to ?K, and the investment rate is equal to ?f(K), so in the steady state, ?f(K) must be equal to ?K.

According to the Definitions in the Textbook, the Steady State