Unit 2: The slowing British economy

This Ch4 clip summarises nicely the current position of the Uk economy

http://link.brightcove.com/services/player/bcpid1184614595?bctid=1832200503

a) What effect will falling consumer confidence (as shown by the decrease in sales at M&S) have on aggregate demand?
b) What effect will falling investment (as stated will happen at M&S) have on aggregate demand?
c) What negative multiplier effects may arise from these decreases in consumption and investment in the economy?
d) Using an AS/AD diagram, explain how a cut in interest rates could reverse this decline in output/economic growth
e) To what extent do you think such a cut in interest rates would alleviate the problems in the UK economy?