Each of the Following Statements Is True Except

Each of the following statements is true except

A) balanced growth occurs when the labor force, capital stock, and real output all grow at the same rate.
B) along a balanced growth path, the ratio of capital to output equals the ratio of the saving rate to the labor force growth rate.
C) Solow showed that the balanced growth path is stable: If the economy is off a balanced growth path, it will naturally tend to return to that path.
D) A higher saving rate raises GDP, in Solow's analysis of the long-run growth model, and permanently raises the growth rate.
E) A higher population growth rate lowers GDP per capita, in the Solow growth model, but does not permanently lower the growth rate.