The equation says for every . Thus a solution is determined uniquely by the block , repeated in both directions. It belongs to the subshift of finite type exactly when all transitions inside the block, and the closing transition from to , are allowed. Hence these fixed points of the th iteration of a map are in bijection with the closed transition chains of steps with a specified symbol at time zero. By the counting argument in part (b), the number starting at is . Summing over proves the trace formula for periodic points of a subshift:
Every closed transition chain extends by periodic repetition, so the extension issue in part (b) does not affect this formula. We count points, not periodic orbits: a least-period- periodic orbit contributes its distinct points.
Here period means fixed by , so the least period may divide . If denotes the number of points of least period exactly , division with remainder shows that a point is fixed by exactly when its least period divides . Consequently
where is the Möbius function and the second equality is Möbius inversion. For example, has one point fixed by every power but no point of least period two; interpreting the printed formula as an exact-period count would therefore be false.