What best explains why the real wage is always driven to the subsistence level in the classical model?

Question

Quizplus · Accepted Answer

In the classical model, the real wage is always driven to the subsistence level because population growth increases the supply of labor, leading to a surplus of labor and downward pressure on wages. As long as population growth continues, wages will remain at the level needed for workers to survive but not enough to increase their standard of living.

What Best Explains Why the Real Wage Is Always Driven