In the context of intergenerational inequality, regression toward the mean is captured by which of the following?
A. the tendency for the 90-50 wage gap to approach the 50-10 wage gap as a country experiences economic growth
B. the tendency for inequality to be wider as a country experiences economic growth
C. the tendency for countries to diverge in their inequality
D. the tendency for income differences across families to get smaller over time as the various families move toward the mean income of the population
E. the tendency for the tax code to erode inequality by targeting the mean tax rate to mean income
Answer: D
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If the price level is 100 for 2005 and the price level is 106.5 in 2007, a nominal GDP in 2007 of $15,600 billion would mean that real GDP in 2007 (in 2005 prices) would be closest to
A. $14,751.3 billion. B. $13,971.2 billion. C. $14,647.9 billion. D. $15,600.0 billion.
Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary