Real GNP per capita is often used when living standards are compared between a developed country and a developing country. What is not a valid reason to doubt the accuracy of this comparison of living standards?
- AIt is not possible to use price indices accurately when computing real figures because spending patterns are different.
- BPeople in developed countries enjoy very different amounts of leisure time to people in developing countries.
- CThe extent of the unrecorded economy is very different in the two countries.
- DThe purchasing power parity theory has been used to make comparisons.