Britain’s New Record: A Recession Worse Than in Europe and North America Britain is experiencing a deep recession. The U.K. depends heavily on consumer spending. In the second quarter, spending on accommodations and food services fell 87 percent. Britain’s recovery will need consumers to feel confident enough to spend.

a. How does a decrease in consumption expenditure influence Britain’s aggregate demand, aggregate supply, unemployment, and inflation?

b. Use the AS-AD model to illustrate your answer to part (a).

c. Use the Phillips curve model to illustrate your answer to part (a).

d. What does the news clip mean by “Britain is experiencing a deep recession”?

e. Use the AS-AD model to illustrate your answer to part (d).

f. Use the Phillips curve model to illustrate your answer to part (d).