Suppose that the economy is well described by the ISLMADAS model with partially sticky prices studied in class. In your answers below, keep in mind the consumers? and rms\" optimal decisions that give rise to the model and explain how and why agents\" decisions change. 1. Suppose that the degree of price exibility in the economy increases, such that the parameter 7 in our price determination equation s=P+vrse') changes. Explain how this change aects the effectiveness of scal policy. In particular, how do the responses of Y, P, N, r, and w, to a given shock in G\