Economic growth, defined as an increase in real GDP over time, brings both positive and negative consequences for an economy and society. These effects are crucial for A-level Economics students to understand when evaluating the desirability of growth.

• Positive impacts: Economic growth typically leads to a higher standard of living, as increased output allows for more consumption of goods and services, improving overall welfare.
• It can also contribute to lower unemployment levels by creating new job opportunities in expanding industries.

• Negative impacts: Rapid growth may result in resource depletion and environmental damage, such as deforestation or pollution, threatening sustainable development.
• Additionally, it might diminish quality of life for some, for example, through reduced leisure time due to longer working hours or increased income inequality.

Balancing these consequences often requires policies like sustainable development strategies to maximize benefits while minimizing drawbacks.