Here is the screenshots of the question. The question is from a book called International Macroeconomics by Uribe, Woodford, exercise 9.8:

Exercise 9.8 (Real Exchange Rate Determination in the Balassa-Samuelson Model) 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 QTUS OUS INUS = aT US = 0.4 ; with a7" and ONUS = akS ; with aN = 0.1, where QTUS and Q denote, respectively, output of tradables and non- tradables in the U.S., a, and ay denote, respectively, labor productivity in the tradable and the nontradable sector, and LTUS and INUS denote, respectively, the amount of labor employed in the tradable and nontrad- able sectors in the United States. The total supply of labor in the United States is equal to 1, so that 1 = LTV + ANY. At the same point in time,Q = Deng. oi, = asst, 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 nontraded sector. Suppose that the price index in the United States, which we denote by PUS, is given by where FEE and Ps denote, respectively, the dollar prices of tradables and nontradables in the United States. Similarly, the price index in Japan is P3 =1IP1IP$ where Japanese prices are expressed in yen. arisen by 1. Calculate the dollarfyen real exchange rate, dened as e = EPJIJFWS, where 5 denotes the dollaryen exchange rate (dollar-price of one yen}. The answer to this question is a number, but show your work. 2. Suppose that the U.S. labor productivity in the traded sector, of", grows at a 3 percent rate per year, whereas labor productivity in the nontraded sector, a", grows at 1 percent per year. Assume that labor 390 Schmitt-Grohe, Uribe, Woodford productivities in Japan are constant over time. Calculate the growth rate of the real exchange rate. Provide an intuitive explanation of your result