(b) Consider a world that only comprises 2 goods (Good 1, Good 2) and 2 countries (UK and Japan). Assume that the population of all countries split their consumption equally between the two goods. + The prices of goods at time t are listed below:- Good 14 Good 2 UK ( GBP) 160- 224 Japan (Yen) 2082 304 Let the spot exchange rate at time t be equal to 0.75 GBP per Yen. Does absolute purchasing power parity (APPP) hold between the UK and Japan? (5 Marks) (c) You are now given the following time t+1 information:- UK national price: 240- Japan national price: 250 Using the information in (b), calculate the time t+1 UK-Japan exchange rate implied by relative PPP