Unit 2: The negative multiplier in action in Uttoxeter

This BBC clip shows how Uttoxeter has been effected by rising unemployment

http://news.bbc.co.uk/1/hi/england/7788858.stm

a) Explain how Uttoxeter is likely to suffer a negative multiplier effect in the near future
b) What will be the effect on the macroeconomic objectives of low inflation, economic growth, low unemployment and a balance of payments equilibrium in the local economy