Question: (a)The version of the Solow-Swan model extended to include human capital provides an excellent description of the cross-country data. Discuss. [Approximate number of words: 1000.

(a)The version of the Solow-Swan model extended to include human capital provides an excellent description of the cross-country data." Discuss. [Approximate number of words: 1000. Strict maximum of words: 1250] (b) Discuss the purchasing power parity and why it is reasonable to suppose that purchasing power parity holds in the long run but not in the short run. [Approximate number of words: 1000. Strict maximum of words: 1250]

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