1. (5 marks] Calculate the dollar/yen real exchange rate, defined as e = pris, where $ denotes the dollar-yen nominal exchange rate (dollar-price of one yen). 2. [5 marks] Suppose that the U.S. labor productivity in the traded sector, ap", grows at a 5 percent rate per year, whereas labor productivity in the nontraded sector, of, grows at 2 percent per year. Assume that labor productivityes in Japan are constant over time. Calculate the growth rate of the real exchange rate. 3. [10 marks] Now assume that the price index in the United States is given by pus = (my5) (Pus ) . Similarly, the price index in Japan is given by Calculate the dollar/yen real exchange rate e assuming the other conditions remain un- changed. 4. [10 marks] Consider the same situation in the question 3. Suppose that the U.S. labor productivity in the traded sector, oy, grows at a 5 percent rate per year, whereas labor productivity in the nontraded sector, of", grows at 2 percent per year. Assume that labor productivities in Japan are constant over time. Calculate the growth rate of the real exchange rate