Which statement best describes growth without development?

• A. Real GDP falls
• B. Real GDP increases and HDI improves
• C. Real GDP increases while HDI stagnates or falls
• D. Inflation rises

Answer: (C)

Growth is about output rising, while development looks at improvements in living standards, health, and education—captured by HDI. So when real GDP increases but HDI stagnates or falls, the economy is growing in size without delivering better well-being for people. That can happen if the extra output mainly benefits a few, or if growth comes with greater inequality, environmental damage, or neglect of essential services like health and education. The other options don’t describe this mismatch: a fall in real GDP is a contraction, not growth; GDP up with HDI up signals growth with development; inflation rising doesn’t necessarily indicate anything about whether living standards are improving.