Public Budgeting & Finance
Exercise 1: Inflation (10 points)
Refer to the accompanying Excel file for the following data.
- Convert all the revenue data in the series from nominal to real using the provided base year. (.5 point)
- Create a chart that displays both nominal and real Revenue for the entire series. The chart must be of the appropriate type and properly constructed and labeled (both axes, chart title). (.5 point)
- How much Revenue did the state generate in 2000 in 2010 dollars? (.5 point)
- How much Revenue did the state generate in 2010 in 2000 dollars? (.5 point)
- Thoroughly describe your process and results for questions 1-4 AS YOU GO. (4 points)
- In another paragraph or two, explain whywe adjusted for inflation and what knowledge or insight we gained by doing so in this case. Use specific data points as examples. (4 points)
- ALL calculations must be done inExcel by Excel—no hand calculators allowed. Excel is a calculator.
- You will be turning in a Word Document with embedded Microsoft Excel Worksheet Objects.
- All tables and charts must be titled, introduced in the text, consistently formatted, and centered.
- You may work together in groups, however, each person must submit their own assignment.
- The answers to all of the questions should be easily identifiable.
- Quantitative data should be appropriately rounded.
- Narratives should be written in the third person (using passive voice makes this easier).
- Create a professionally formatted and aesthetically pleasing document. (1 point)
- Go get some other tax or revenue data and deflators. If the data have not yet been adjusted for inflation, adjust them. If they have been adjusted, convert them to nominal. Create a chart. Cite your sources. Repeat steps 5 and 6 from above. (2 points)