Overall Verdict & Exam Characteristics
The 9708 May/June 2026 series presents an accessible yet rigorous test of AS Level Economics. Paper 1 requires precise theoretical recall and swift graphical interpretation across all five syllabus areas. Paper 2 presents a real-world case study centred on Argentina’s severe macroeconomic adjustment package (currency depreciation, subsidy cuts, tariff hikes, and deregulation), challenging students to apply standard micro and macro frameworks directly to extreme economic circumstances.
Where the Marks Lie
Across the examined components, significant weight is concentrated in:
- Elasticity & Market Mechanisms: Calculation and conceptual evaluation of \(PED\), \(YED\), and \(XED\), alongside functions of the price mechanism (rationing, signalling, incentivising).
- Government Intervention & Microeconomic Policy: Price ceilings, price floors, and transport subsidies evaluated in Section A and Section B.
- Macroeconomic Policy & Supply-Side Dynamics: The transmission mechanism of fiscal and supply-side reforms under different \(LRAS\) assumptions (Keynesian vs Classical).
- International Trade & Current Account: Currency depreciation, trade surplus impacts, and the implications of protectionism.
Examiner Pitfalls & Common Mistakes
High-scoring candidates distinguished themselves through precision and structured evaluation:
- Precision in Definitions: In Paper 1 and 2, defining exchange rate depreciation requires explicit reference to external/foreign currency value within a floating regime, rather than vague domestic purchasing power drops.
- Diagrammatic Accuracy: In Section A Question 1(c), shifts in supply due to subsidy removal must be clearly drawn with explicit changes in equilibrium price \((P_1 \to P_2)\) and quantity \((Q_1 \to Q_2)\).
- Balanced Evaluation (AO3): For 12-mark essays, answers that only present one side cannot access Level 3 AO3 marks. A substantiated concluding judgment addressing the specific question prompt is strictly required.
Preparation & Exam Strategy
Students should master step-by-step chains of reasoning (e.g., subsidy withdrawal \(\to\) increased production costs \(\to\) leftward supply shift \(\to\) higher consumer price \(\to\) upward cost-push pressure). Ensure both Keynesian (elastic, intermediate, inelastic segments) and Classical vertical \(LRAS\) frameworks are practiced when analyzing fiscal stimulus or contraction.