Problem 2 In countries A and B, households consume only wheat and haircuts. Wheat is internationally traded, whereas haircuts are not. In country A, a ton of wheat is 10 times as expensive as a haircut, while in country B it is only 5 times as expensive. The consumer price index in country i = A, B, denoted Pi, is Pi = (PW ) 0.25 (PH) 0.75 ", where P. and PH denote the prices of wheat and haircuts in country i. (a) Calculate the real exchange rate between countries A and B. (b) Which country is more expensive and why