Increase in absolute and per capita real GNP do not connote a higher level of economic development, if

1. The question asks under which condition an increase in absolute and per capita real GNP might not signify a higher level of economic development. 2. Economic development is a broader concept than mere economic growth (measured by GNP). Development implies improvements in the overall well-being of the population, including factors like reduction in poverty, unemployment, inequality, and improvements in health and education. 3. Options (A) and (B) describe sectoral imbalances (between industrial output and agricultural output). While potentially problematic, growth can still occur, and it doesn't inherently negate economic development if other factors are positive. 4. Option (D) describes a trade imbalance (imports grow faster than exports). This can lead to balance of payments issues but doesn't automatically mean development isn't happening. 5. Option (C) states that poverty and unemployment increase. If overall economic output (GNP) is rising, but the benefits are not reaching the wider population, leading to increased poverty and unemployment, then this indicates that the growth is not translating into genuine economic development. The standard of living for many might be worsening despite the rise in aggregate figures. This situation directly contradicts the notion of a higher level of economic development.