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2. [5 marks] Suppose that the US. labor productivity in the traded sector, egg, grows at a 5 percent rate per year, whereas labor productivity
2. [5 marks] Suppose that the US. labor productivity in the traded sector, egg, grows at a 5 percent rate per year, whereas labor productivity in the nontraded sector, 0&3, 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
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