Consumption Spending= $150 trillion dollars

Gross Investment= $55 trillion dollars

Net Investment= $50 trillion dollars

Government Purchases= $75 trillion dollars

Government Transfer Payment= $30 trillion dollars

Import= $25 trillion dollars

Export= $20 trillion dollars

GDP= Consumption Spending + Net Investment + Government Purchases + Net Exports

= 150+50+75+5

= $ 280 trillion dollars.

Dynamic scoring is actually an adaptation to the previously employed static scoring. Static scoring had the weakness of only providing current analysis thereby lacking the power to predict what might happen in the future. Financial analysis of nations depends very much on the ability of the analysis to provide information that can act as guidance towards future undertakings. Lack of this capacity may be dangerous since a country might not be able to prepare appropriately to economic dynamics that might emerge in future. Furthermore, financial analysis should be able to compare between various aspects of the economy so that the subsequent data may be holistic in nature. The analysis should also be able to predict how the whole system might behave in the event that the dynamics suddenly change. These considerations actually strengthen an analytical system as it provides accurate and relevant information towards future approaches.

The realization of these shortcomings in using the static scoring led to the invention of the more efficient dynamic scoring. Just as its name suggests, the system is dynamic in that it has the capacity to predict how a system might change ones the variables affecting it changes. Such a prediction prepares a nation appropriately by allowing it to structure policies that might mitigate or eliminate negative changes. In its analysis, dynamic scoring compares between various aspects of the economy provides an analysis that is holistic in nature. Therefore, in determining the method to use dynamic scoring is the most appropriate.

Live Chat