Welcome to the 85th edition of our Newsletter EdGenie's 📜 Sunday Scroll...

Every Sunday I send out actionable tips, tricks and real-world application insights from my 15 year experience coaching students to achieve As and A*s in their Economics A Levels via EdGenie.

Hey Genies, 👋

Let's get something clear:

Everything you do counts. ✅

Not just the things you want to count.

But every little thing you do, daily.

✅ When you read your economics notes, that counts. 📖
✅ When you practice questions consistently, that counts. 📝
✅ When you attend revision courses (like EdGenie’s Easter Accelerator), that counts. 🚀
✅ When you get feedback and act on it, that counts - big time. 🎯

But equally…

❌ When you binge-watch Netflix all evening, that counts too. 📺
❌ When you scroll TikTok instead of revising, that counts. 📱
❌ When you say "I'll do it later," that absolutely counts. ⏰

Every choice adds up.

Every action is either a step towards—or a step away from—your goal.

Ask yourself:

​ "Is what I'm doing right now getting me closer to that A/A*?" 🥇

If the answer isn't a resounding YES, change your actions.

Choose wisely, because every single action counts.
You've got this.

Emre 🧞‍♂️

🇬🇧📉 UK Growth Forecast Slashed: UK GDP growth for 2025 has been downgraded from 1.2% to 0.8% following Trump's tariff moves. Economists now expect weaker investment and falling confidence to drag on economic output.

Q. Explain how an increase in US tariffs on UK exports could affect UK aggregate demand.
A. Higher US tariffs make UK exports more expensive in the US, reducing demand for UK goods abroad. This leads to a fall in UK exports, which are a component of aggregate demand (AD = C + I + G + X – M). As exports fall, AD shifts left, reducing real GDP. If significant, this could slow economic growth and increase unemployment in export-heavy sectors.

Q. Analyse the possible impact of increased global economic uncertainty on UK employment and inflation.
A. Uncertainty discourages firms from investing or hiring, reducing job creation and potentially increasing cyclical unemployment. Reduced investment also weakens productivity growth, slowing economic expansion. On inflation, weaker demand can lead to lower demand-pull inflation. However, global supply chain disruptions and costlier imports could create cost-push inflation. The net effect depends on which force dominates and for how long.

Q. Examine how a strengthening exchange rate could affect the UK’s balance of payments on the current account.
A. A stronger pound makes UK exports more expensive and imports cheaper. This reduces export revenue and increases import spending, worsening the trade balance. If the Marshall-Lerner condition holds, the current account will deteriorate in the long run. Additionally, weaker exports affect domestic output and employment. However, strong sterling can reduce import-led inflation, benefitting consumers. The net impact depends on price elasticity of demand for exports and imports.

Q. To what extent can monetary policy offset the negative effects of a trade war on the UK economy?
A. Monetary policy can stimulate demand by cutting interest rates, boosting consumption and investment. It can also weaken the currency, improving export competitiveness. However, in a trade war, falling business confidence may limit the effectiveness of lower rates. If job losses and investment declines are driven by global uncertainty, monetary policy alone may be insufficient. Supply-side challenges, like disrupted value chains, require broader policy tools. Thus, while helpful, monetary policy has limits in this context.
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