
die Wirkung
effect
The effect or consequence that an action, substance, or event has on something or someone.
Die Wirkung des Schmerzmittels ließ schnell nach.
The effect of the painkiller wore off quickly.
effect / impact
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effect
The effect or consequence that an action, substance, or event has on something or someone.
Die Wirkung des Schmerzmittels ließ schnell nach.
The effect of the painkiller wore off quickly.

impact / impression
The impression or aura that a person, work of art, or situation has on others.
Das Gemälde entfaltete im großen Raum seine volle Wirkung.
The painting had its full impact in the large room.
The noun 'die Wirkung' (effect) is derived directly from the verb 'wirken' (to have an effect / to seem). Both words describe something producing an effect or a particular impression.
Die neuen Regeln wirken sich positiv auf die Sicherheit aus.
The new rules have a positive effect on safety.
You can recognize the meaning from the context: If it is about a measurable effect (e.g., of medicine or a measure), the first meaning is intended. If it is about a subjective impression (e.g., from art or a person), the second meaning is intended.
Die Wirkung des Medikaments setzte sofort ein.
The effect of the medication began immediately.
To name the target of the effect, you use the preposition 'auf' (on) with the accusative. Common collocations are 'eine Wirkung zeigen' (to show an effect), 'ohne Wirkung bleiben' (to have no effect), or the well-known word 'Nebenwirkung' (side effect).
Hat das neue Gesetz eine Wirkung auf die Wirtschaft?
Does the new law have an effect on the economy?
When referring to an impression, 'Wirkung' (impact / impression) is often combined with verbs such as 'entfalten' (to unfold / to develop), 'erzielen' (to achieve), or 'hinterlassen' (to leave behind). These describe how an impression arises or develops.
Erst bei Nacht entfaltet die beleuchtete Brücke ihre volle Wirkung.
Only at night does the illuminated bridge have its full impact.
consequence / episode
Folge and Wirkung describe what arises from a cause. Folge places more emphasis on the result that occurs afterward. Wirkung, by contrast, emphasizes the influence that an action, substance, or event has on someone or something.

Die beruhigende Wirkung des Medikaments setzte schnell ein.
The medication's calming effect took hold quickly.
Die starke Müdigkeit war eine Folge des Medikaments.
The severe fatigue was a consequence of the medication.