Final answer:
The income gap between the top 1% and the rest of the population has increased. Since the 1970s, there has been a decline in the middle class's size, income, and wealth, while corporate profits and CEO pay have surged significantly, indicating a rise in income inequality.
Step-by-step explanation:
The question pertains to the income gap between the top 1% and the rest of the population. Analyzing the given information, it is evident that the income gap has actually increased. Since the 1970s, the size, income, and wealth of the middle class have been declining, with corporate profits and CEO pay witnessing significant increases. For example, corporate profits have soared by more than 141 percent, and CEO pay has escalated by over 298 percent, showcasing a stark contrast to the stagnation in median income for most of the population. Additionally, income inequality has been highlighted by dramatic examples such as the CEO of Wal-Mart earning 950 times more than the company's average associate. This trend is not limited to corporate America; disparities in earnings based on race and gender also persist today. Therefore, the answer to the student's question is that the income gap between the top 1% has increased.