Increase is absolute and per capital real GNP do not connote a higher level of economic development, if

The correct option is: poverty and unemployment increase.

Understanding Real Gross National Product (GNP):
Gross National Product (GNP) measures the total monetary value of all final goods and services produced by a nation's residents over a given period. Real GNP adjusts this figure for inflation to show true volume changes in output. Per capita real GNP measures the average real economic output per person, calculated as:

$\text{Per Capita Real GNP}=\frac{\text{Real GNP}}{\text{Total Population}}$

Distinguishing Economic Growth from Economic Development:
1. Economic Growth: Refers strictly to a quantitative increase in an economy's total output or national income (e.g., rise in real GNP or per capita real GNP).
2. Economic Development: A broader, qualitative concept that encompasses economic growth alongside structural improvements in the quality of life, equitable distribution of income, reduction of poverty, creation of gainful employment opportunities, and improved access to healthcare and education.

Why Increases in GNP May Not Connote Economic Development:
Even if an economy experiences substantial growth in total and per capita real GNP, this growth may be concentrated in a small segment of the population or driven by capital-intensive industries that do not create adequate jobs. If high growth is accompanied by worsening income inequality, rising unemployment, and persistent or expanding poverty, the general well-being of the majority of citizens deteriorates.

Therefore, increases in absolute and per capita real GNP fail to signify genuine economic development if poverty and unemployment increase.