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

While an increase in absolute and per capita real GNP indicates economic growth, it doesn't automatically translate to economic development.

Economic development is a broader concept that encompasses the well-being of the population, including factors beyond just increased income.

If poverty and unemployment increase despite the growth in GNP, it signifies that the benefits of growth are not reaching a significant portion of the population. This indicates a lack of inclusive growth and a failure to improve the overall quality of life.

Therefore, an increase in poverty and unemployment negates the positive implications of GNP growth for economic development.

Hence, option C is the correct answer.