Final answer:
According to John Maynard Keynes, it is true that the overall level of employment in an economy is not determined by the wage rate offered. His theory emphasizes that employment levels are more influenced by aggregate demand rather than wage rates or supply-side factors.
Step-by-step explanation:
According to John Maynard Keynes, the overall level of employment is not determined by the wage rate that is offered. This statement is true. Keynes's perspective, outlined in his work The General Theory of Employment, Interest, and Money, during the Great Depression, showed that levels of production and employment were not constrained by the lack of supply capacity, but rather by the inadequate demand in the economy. His theory suggested that even during economic downturns, where businesses and the economy face challenges, the existing capacity to supply goods and services, such as labor, machinery, and technology, is not fully utilized due to a lack of aggregate demand. As a result, this can lead to both short-run and long-run unemployment, regardless of wage flexibility.