Country X’s living standards were measured against country Y’s living standards by using real GNP per head converted into US dollars. Country X was placed above country Y. Which factor might have led to this ranking being wrong?
- AActual market exchange rates were used rather than purchasing power parity rates.
- BGovernment spending on transfer payments was higher in country Y than in country X.
- CInflation was higher in country X than in country Y.
- DThe distribution of income was more unequal in country X than in country Y.