1. Human Capital in the Solow-Swan Model: Suppose that the production function in the Solow-Swan model is given by Y(t) = AK(t)"H(t)L(t) 1-a-x where Y is output, A is technology, K is physical capital, H is human capital, and L is labour. Assume that 0 So 0. Output can be converted one-to-one into either investment in physical capital or human capital. Saving directed towards investment into physical capital is given by 0