Economic impact refers to the effect that an event, policy, or market change has on the economy of a specific area or the broader economy. This can include changes in employment rates, income levels, and overall economic growth. For example, a new factory opening in a town can create jobs and increase local spending, positively affecting the community's economy. Additionally, economic impact can be measured through various indicators, such as Gross Domestic Product (GDP), unemployment rates, and consumer spending. Policymakers and businesses often analyze these impacts to make informed decisions that promote economic stability and growth.