Unit 3: The housing slump and negative multiplier effects

This article from Geoff Riley explains why the decline in the housing market may have far more wide ranging effects on the economy.

http://www.tutor2u.net/blog/index.php/economics/comments/housing-slump-and-negative-multiplier-effects/

Then watch the BBC video clip

http://news.bbc.co.uk/1/hi/business/7499432.stm

a) Explain how the multiplier effect can be applied to this decline in the housing sector and why it will lead to a further unemployment rise in the UK.