Question 2 (10 pts). In Chapter 2, we introduced the Ricardian model, and you were shown how nominal prices, wages, and even exchange rates can be derived from the real underlying patterns of productivity and trade. Work through this model using your assigned values of the home country's L, MPL MPL and W, and the foreign country's L", MPLX, MPLY", and W'. Labor is measured in thousands of workers per week, the home country's currency is the Dollar, and foreign currency is measured in Yuan. Normally it is good to show your work. However, because your answers are unique to you, you don't need to show me your work, just your answers. Prices should be rounded to two decimal places, and quantities to the nearest integer a) Draw the PPF for both the home and foreign countries, being sure to clearly label the intercepts. Assuming that the free trade price ratio is halfway between the home and foreign autarky price ratios, draw the free trade CPFs for both countries. Draw the highest indifference curves each country can reach with autarky and with free trade. b) Based on the actual numbers given to you, report your numerical solutions for: a. What is the nominal autarky price of the home country's export good? b. What is the nominal autarky price of the foreign country's export good? c. Assuming free trade only affects the nominal price of the import good, not the export good, what is the nominal price of the home country's import good under free trade? d. Assuming free trade only affects the nominal price of the import good, not the export good, what is the nominal price of the foreign country's import good under free trade? e. What is the free trade exchange rate, in terms of Dollars per Yuan? Assignment identifier = 109 (2) L = 360, MPLx = 10, MPLy = 4, W = $ 800, L* = 500, MPLx* = 20, MPLy* = 4,W* = * 2400