National income statistics indicate that real GDP per head is 25% greater in country X than in country Y. Why may this difference overstate the difference in average living standards between the two countries?
- ACountry X has a larger population than country Y.
- BCountry X has a higher rate of inflation than country Y.
- CThe proportion of services people provide for themselves is higher in country Y.
- DThe proportion of the country’s industry which is owned by foreign firms is higher in country Y.