The assumption that population growth will lead to a fall in the real wage rate back to subsistence level is

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This assumption is commonly associated with the Malthusian theory of population growth, which suggests that population growth will outstrip the growth of production, leading to a decrease in the real wage rate back to subsistence level. It is not central to the new growth theory, and not accepted by all economists today. It is not necessarily part of the neoclassical school of growth theory either.

The Assumption That Population Growth Will Lead to a Fall