Executive Difficulty Verdict

The October/November 2025 Economics (9708) papers present a moderate to high difficulty level (3 out of 5 stars). While the multiple-choice components (Paper 1 and Paper 3) tested familiar core syllabus themes with precision, the structured essay and data-response papers (Paper 2 and Paper 4) demanded high levels of contextual synthesis and critical evaluation. The integration of current macroeconomic events, such as the post-COVID US fiscal stimulus and inflation dynamics, elevated the application standard required from candidates.

Where the Marks are Won and Lost

In the written papers, high-scoring candidates set themselves apart by securing top-tier marks in AO3 Evaluation. The mark schemes explicitly reserve evaluation marks for responses that offer a balanced, dual-sided argument followed by a justified conclusion. For instance, in Paper 2 Question 2(b) on subsidising merit goods, or Paper 4 Question 3 on perfect competition, presenting only one side of the argument capped candidates' evaluation scores at zero. Diagrammatic accuracy remains another key differentiator: fully-labeled axes, clear direction arrows for shifts (e.g., from \( S \) to \( S_1 \) or \( MPC \) to \( MSC \)), and highlighting welfare loss or price changes are mandatory for full marks.

Common Examiner Pitfalls

  • Growth Rate vs. GDP Level: A frequent and highly damaging error occurred in Paper 2, Question 1(a). Candidates confused a fall in the rate of economic growth with a fall in the absolute level of GDP. Real GDP was still rising, albeit at a slower pace.
  • Incomplete Tax Incidence Diagrams: Many students struggled to show how the Price Elasticity of Demand (PED) determines the tax burden distribution. Diagrams must clearly show the consumer and producer surplus loss.
  • One-Sided Evaluative Essays: In Section B and C, many essays read as purely descriptive pieces rather than analytical evaluations, ignoring alternative policy limits.

Strategic Revision Advice

To maximize performance in future series, candidates should prioritize the following strategies:

  • Master the Transmission Mechanisms: Do not just state that an increase in productivity reduces prices. Explain how: higher productivity reduces unit costs of production, which shifts the short-run aggregate supply (SRAS) curve to the right, causing a downward movement along the aggregate demand (AD) curve to a lower equilibrium price level.
  • Deconstruct Command Words: Pay attention to direct instructions. 'Explain' requires causal chains, while 'Assess' or 'Evaluate' demands an investigation of limitations, counter-arguments, and overall effectiveness.

Upcoming Series Predictions

With global economic conditions shifting towards fiscal adjustment and supply-side reforms, future papers are highly likely to test the trade-offs of fiscal policy and monetary policy in greater depth. Keep a close eye on the circular flow of income (including the multiplier effect) and structural versus cyclical unemployment policies, which are highly relevant and overdue for deeper exploration in upcoming essay questions.