APFIVE Economic Growth and Income Inequality
A country shows growth in its Gross Domestic Product (GDP) and Gross National Income (GNI) per capita, yet its Gini coefficient is also increasing. This trend most likely indicates which of the following development challenges?
A
Economic growth benefiting only certain segments of society
B
Declining overall productivity despite statistical growth
C
Transition from informal to formal economic activities
D
Overreliance on international aid distorting indicators
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