2. Use a diagram with schedules A and B as the ones derived by DFS (Dornbusch, Fischer, and Samuelson, 1977). Suppose the world consists of U.S. and China, and that Chinese productivity in all products uniformly rises. How does Chinese uniform growth affect (i) relative wage of U.S. to China, (ii) range of goods that the U.S. imports from China, and (iii) prices of imported goods to the U.S.? Note: For part (iii), it suffices if you consider only those goods that the U.S. imports from China in both the old and new equilibria. In addition, without loss of generality measure prices in terms of units of Chinese labor, meaning that both in the old and new equilibria assume that Chinese wage is always normalized to one. This normalization is necessary in general equilibrium models because we want to consistently measure all values in units of a certain good (or a certain factor of production).