Consider the following closed economy where natural level of output (Y ) is 1200. Suppose aggregate demand is given by the following equation, P = 2000 Y anda = 2, E(Y Y ) = 0, EP = 1,The fraction of firms with sticky prices, s, is 0.75.

Would the change in Y as a result of government expansionary policybe larger if s were instead 0.9? (No need to compute the equilibrium, use your intuition).