At steady state, which two factors are equal to one another?

At steady state in an economy, it is essential to understand the relationship between investment and depreciation. At this point, the capital stock remains constant over time, which means that the amount of capital being added through investment is exactly equal to the amount of capital that is being lost due to depreciation.

Investment represents the amount of new capital that is put into the economy, while depreciation accounts for the wear and tear of existing capital. For the economy to maintain a steady level of capital, the flow of investment must match the flow of depreciation. If investment exceeds depreciation, the capital stock would grow indefinitely. Conversely, if depreciation exceeds investment, the capital stock would decrease.

This equilibrium is central to understanding how an economy reaches a point where capital remains stable over the long run. Thus, in steady state, the relationship where investment equals depreciation holds true, making this the correct answer.

Other factors in the choices, such as consumption or savings, do not establish a direct equivalent relationship at steady state in the same way that investment and depreciation do.