Consider two sectors using the same type of capital to produce two different goo

Consider two sectors using the same type of capital to produce two different goods. Production in sector 1 is characterized by a low depreciation rate whereas production in sector 2 is characterized by a high depreciation rate. Both sectors share the same initial level of capital stock. Using a diagrammatic example discuss which sector will grow/shrink faster in the short-run and how your answer depends on the exact location of the initial level of capital stock.2. R&D and economic growth. (max. 200 words) In a given year countries with a higher level of GDP per capita tend to spend a larger fraction of their GDP in R&D. Explain this phenomenon and discuss the implications for the convergence of poor countries with respect to rich ones.3. Financial crisis and the UK labor market. Answer with 1 graph and max. 200 words.UK unemployment has been increasing for a sustained period of time. March 2010 figures reveal that it is now at 16-year high. Meanwhile employment and real wages have not declined. Using a diagrammatic analysis show the channel through which a financial crisis is likely to affect the level of employment as well as real wages. Discuss how your answer depends on the factors affecting the slope of the labour supply and/or rigidities in the labour market.Slides with class lessons will be provided for reference once the bid is accepted.