Which among the following conditions are true for Golden Rule of Accumulation of Edmund Phelps for…

In Edmund Phelps's (1961) Golden Rule of Capital Accumulation, the steady-state per-capita consumption is maximized at a unique Golden Rule savings rate (Statement I is true, equal to capital's share of output under a standard neoclassical production function). At the Golden Rule steady state, the slope of the production function (marginal productivity of capital, MPK = f'(k)) equals the slope of the break-even investment line: f'(k) = n + g + delta. In the simplified baseline model with a constant population (n = 0) and no technological progress (g = 0), break-even investment is purely capital depreciation (delta * k), so the Golden Rule condition becomes MPK = delta (marginal productivity of capital equals capital depreciation, Statement II). Thus, under this baseline formulation, both Statement I and Statement II are true .