top of page
< Back


Increase in absolute and per capita real GNP do not connote a higher level of economic development, if
(a) industrial output fails to keep pace with agricultural output.
(b) agricultural output fails to keep pace with industrial output.
(c) poverty and unemployment increase.
(d) imports grow faster than exports.



To suggest corrections, send feedback using feedback button in top menu.

To suggest corrections, use feedback icon on top menu.


An increase in absolute and per capita real Gross National Product (GNP) refers to a growth in the total and average income of a country's residents, respectively. However, economic development encompasses various aspects beyond just income growth. If poverty and unemployment increase despite the growth in GNP, it indicates that the benefits of economic growth are not reaching the broader population, and thus, the level of economic development is not improving.


How was this explanation?

bottom of page