A developing nation may not experience an increase in the average standard of living even if it increases its output of goods and services because the growth incurred from the production of those goods and services does not get distributed equitably throughout the population of the country.
Economic Growth of a country is measured in terms of its Gross Domestic Product, i.e., the output of its goods and services measured with time. Whereas, the living of standard increases with economic development, when the resources or the benefits accruing from the growth are allocated evenly throughout the population of the country.
In some developing countries, due to the political culture, corruption, lack of accountability and transparency, the growth gets confined to a circle of people.
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