In the Golden Rule steady state,the marginal product of capital is equal to the

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In the Golden Rule steady state, the marginal product of capital is equal to the combined effect of population growth and depreciation rate. This is because in the steady state, the economy is in balance where the capital stock remains constant over time. The capital stock depreciates at a certain rate and new capital is invested to maintain the capital stock per capita. The population growth rate influences the required investment rate, as the investment should be made for both current and future generations. Therefore, the marginal product of capital should equal the combination of the population growth and depreciation rate for a sustainable economy.

In the Golden Rule Steady State,the Marginal Product of Capital