Consider two countries, say the United States and Japan. Both countries produce tradables and nontradables. Suppose that at some point in time the production technology in the United States is described by US Lus; with an = 0.5 and QN US LUS. = aN LN ; with an aUS = 0.2 where QYs and QN's denote, respectively, output of tradables and nontradables in the U.S., as and aN ay denote, respectively, labor productivity in the traded and the nontradable sector, and LY's and Ly' denote, respectively, the amount of labor employed in the tradable and nontradable sectors in the United States. The total supply of labor in the United States is equal to 1, so that 1 = Lys + LyS. At the same point in time, production possibilities in Japan are given by Qr = 0.3LT and QN = 0.3LN, where the superscript J denotes Japan. The total supply of labor in Japan is also equal to 1. Assume that in each country wages in the traded sector equal wages in the nontradable sector.[7.5 marks] Now assume that the price index in the United States is given by g i PUS = (Piggy (P53)? Similarly, the price index in Japan is given by 2 1 PJ = or W. Calculate the dollar/yen real exchange rate 6 assuming the other conditions remain un- changed