The "Growth Effect" refers to the phenomenon where an increase in a country's economic output leads to improvements in various social and economic indicators. This can include higher employment rates, better living standards, and increased investment in public services. As economies grow, they often generate more resources that can be allocated to education, healthcare, and infrastructure. Additionally, the Growth Effect can create a positive feedback loop. As individuals and businesses experience higher incomes, they tend to spend more, stimulating further economic activity. This cycle can enhance overall prosperity, benefiting both individuals and communities, and is often a key focus for policymakers aiming to boost GDP and economic development.