A/A* Guarantee

7 Day Money-Back
Guarantee

500+ Grades Boosted

Home > Wednesday Wisdoms: Newsletter > 🧞‍♂️ I recently came across a quote...

Welcome to the 23rd edition of Wednesday Wisdoms by EdGenie!

Every Wednesday I send out actionable tips, tricks and real-world application insights from my 13-year experience coaching students to achieve As and A* in their Economics and Business A Levels.

Jump to Section:


🧞‍♂️ I recently came across a quote...

Recently, I came across a quote by Patrick Bet-David that resonated deeply with me, and I immediately thought of you.
He said...
"When you're winning, you're not as good as you think you are; when you're struggling, you're not as bad as you think you are."

This statement holds profound truth, especially in the context of your academic journey in A-Level Economics. You're likely to find yourself in one of these two camps.

🔝 If You're Winning:
Achieving top grades? Fantastic, but don't rest on your laurels. A single challenging 25 marker can shift you from an A/A* to a C/D.


Avoid Complacency: Continue to challenge yourself. Complacency is the enemy of progress.

Maintain Consistency: Keep up with regular question practice. Consistent effort is key to sustaining high grades.

Seek Support: If you're soaring high but want to ensure your results reflect your hard work, seek further guidance and support.

📉 If You're Struggling:
If you're not hitting those high marks, remember, you're not as far off as you might think.


Believe in Your Potential: I've witnessed students climb from Us to As, Es to A*s. It's possible.

Seek the Right Guidance:
Often, the gap between where you are and where you want to be is just the right guidance away.

Identify the Issue: Struggling with C or B grades? It might just be a matter of honing your exam technique or understanding certain topics like market structures better.

Daily Support: Ensure you’re getting the daily support needed to address these gaps.

🌟 The Bottom Line:
Whether you're at the top of your class or not quite there yet, the key is balance.

Don't let success make you complacent, nor let challenges deflate you.

Both scenarios offer valuable lessons and opportunities for growth.

Let's continue this journey with the right mindset, strategies, and support. You can turn those economics lessons into stepping stones for success.

Remember, you're capable of more than you think. Let’s make these next few months count!

See you on EdGenie

Emre

Five charts explaining the UK’s economic prospects in 2024

Summary

📊 Inflation and Economic Challenges: The UK enters an election year facing economic hurdles, with inflation declining from over 10% to 3.9%, yet remaining above the target until 2025.

🏦 Interest Rate Speculations: Financial markets anticipate a reduction in the Bank of England's interest rate from 5.25% in mid-2024, amid global economic cooling.

📉 GDP Growth Stagnation: The UK's GDP growth is sluggish, with a 50-50 chance of recession and zero growth expected for 2024, despite Rishi Sunak's focus on economic growth.

📈 Rising Unemployment Predictions: Unemployment is forecasted to peak at 1.6 million (4.6% of the labour force) by Q2 2025, with job openings decreasing and pay growth expected to slow.

💷 Taxation Outlook: Taxes are projected to reach nearly 38% of GDP by 2028-29, with potential tax cuts anticipated in the spring budget ahead of the general election.

🏘️ Escalating Housing Costs: The Bank of England’s interest rate hikes have led to increased mortgage costs, with typical repayments expected to rise by about £240 (39%) for many homeowners by 2026.

🛏️ Rental Market Impact: Landlords facing higher borrowing costs have raised rents or sold properties, contributing to record increases in private sector rents.


A Level Economics Questions:
Q: What are the potential macroeconomic effects of the UK's inflation rate decreasing from over 10% to 3.9%?
​A: The decrease in inflation can lead to increased consumer confidence and spending as the purchasing power stabilizes. It may also prompt the Bank of England to reconsider its monetary policy, potentially lowering interest rates to encourage economic growth. However, if inflation remains above the target, the Bank might maintain higher interest rates to ensure price stability.

Q: How could zero GDP growth forecasted for 2024 affect the UK's fiscal policy and unemployment rates?
A: Zero GDP growth indicates economic stagnation, which could lead to higher unemployment rates and lower tax revenues. The government may need to implement expansionary fiscal policies, such as increasing public spending or cutting taxes, to stimulate economic growth and prevent a rise in unemployment.

Q: Evaluate the implications of reducing the Bank of England’s interest rate from 5.25% on the UK housing market.
A: Lowering the interest rate from 5.25% could make borrowing cheaper, potentially stimulating the housing market by increasing demand for mortgages. This might lead to a rise in house prices. However, for existing mortgage holders, especially those with variable rates, this could mean lower monthly repayments, easing the financial burden.

Q: Analyse the impact of rising unemployment, forecasted to reach 4.6% by Q2 2025, on aggregate demand in the UK.
A: An increase in unemployment to 4.6% could lead to a decrease in aggregate demand. As more people become unemployed, their income and consequently their spending power decreases, leading to reduced consumption of goods and services, which can further dampen economic growth.

Possible A Level Economics 25 Marker Question

Assess the macroeconomic effects of taxes reaching nearly 38% of GDP by 2028-29 in the UK.

Infographic of the Week

Global Wealth Disparity: A Tale of Continents and Economic Maturity

The global distribution of wealth across various regions provides a clear picture of economic maturity and inequality. In 2023, data from UBS shows significant disparities: North America leads with 42% of adults having wealth over $1 million, reflecting its advanced economy status. Europe closely follows, with an equal 27% in both the $100K - $1M and over $1M wealth ranges. Asia-Pacific and China show a broader distribution across wealth ranges, indicative of their economic transition, particularly China's shift towards a service-oriented economy. Contrastingly, Africa and India have larger proportions of their population in the lower wealth brackets, underlining the challenges in emerging markets. While global median wealth has increased fivefold since 2000, largely thanks to China's economic rise, wealth inequality both within and between countries has grown since the 1980s, highlighting the uneven progress in global economic development.

Chart of the Week

Sterling's Varied Fortunes: A Year of Currency Fluctuations

In 2023, sterling experienced a diverse journey against major global currencies, as reported by the Bank of England. While it saw a modest increase of just over 2% against the euro, from £1:€1.128 to £1:€1.154, its gains were more pronounced against other major currencies. Sterling rose by 6% against the US dollar, 9% against the Chinese yuan renminbi, and an impressive 13% against the Japanese yen. These fluctuations were influenced by various factors, including inflation rates, economic growth, interest rates, and fiscal credibility. The expectation that UK interest rates would remain high played a significant role in sterling's ascent. However, the pound's value is still lower compared to a decade ago, except against the yen, where it now stands 4% higher than the rate in December 2013. This mixed performance underlines the complexity of currency markets and the multiple factors driving exchange rate movements.

Macroeconomic Data


Whenever you're ready there is one way I can help you.

If you or your child are looking to Boost your A level Economics Grades in under 30 days, I'd recommend starting with an all-in-one support network where you get 24/7 access to a SuperTutor:

Join EdGenie 🧞‍♂️: Transform your A-Level Economics essays and exam marks (genuinely) with our comprehensive on-demand learning platform. This carefully curated course blends engaging content with effective exam techniques, the same ones that have empowered over 1,000 of my students to achieve an A or A* over the last 13 years. 
A huge thanks for hopping on board EdGenie's Wednesday Wisdoms newsletter! 
I'm Emre, and I've got a big goal - to make A* education accessible to all A-level students.
And it Starts With You!

Emre Aksahin
Chief Learning Officer at Edgenie