Question

does massive unemployment shift the ppc to the left..?

Answer 1

PPC or Productions Possibility Curve shows the production of two good with the contributions of external factors like technology to this process. A massive unemployment will not shift the PPC curve to the left. Rather, the point on the curve where the production was depicted before will now shift to a point below the one earlier depicted. This is because, what happens here is an inefficient use of resources. This is depicted by a point below the graph and not to the left.