The correct option, "Poverty and unemployment increase," highlights that an increase in absolute and per capita real Gross National Product (GNP) does not inherently reflect economic development. Economic development is more than just growth in GNP; it encompasses improvements in the quality of life, income distribution, and social welfare. If poverty and unemployment rise, it indicates that the economic growth is not inclusive or sustainable, failing to translate into better living conditions for the majority of the population, thus undermining the holistic measure of development.