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