Explain one possible benefit of economic growth.

Economic growth, an increase in a country's output (real GDP), has several potential benefits: - **Higher living standards:** Higher output leads to higher average incomes (GDP per capita), allowing people to afford more goods and services. - **Lower unemployment:** To produce more output, firms need to employ more workers, reducing cyclical unemployment. - **Increased government tax revenue:** Higher incomes, profits, and spending lead to more revenue from taxes, which can fund better public services or reduce the budget deficit. - **Improved business confidence and investment:** A growing economy encourages firms to invest in new capital, leading to a virtuous cycle of further growth (the accelerator effect).