By default yes.
When you set a reservation, the cluster makes its calculation like if the reserved resources were used. If you set a reservation it means you want this resource available at all times even if the host is catching fire.
If expandable is checked, a consumer of a resource pool can "borrow" (up to its limit if one is set) from the parent resource pool if it has free resources.
If you don't set any reservations the full resources of the cluster will be used to calculate the entitled resources.
When Resource contention occurs (CPU at 100%) the shares will kick to distribute the resources to the VMs:
Example 1:
Root resource pool (cluster) : 40 GHz
RP A : Shares = 2000 (default "Normal")
RP B : Shares = 2000
So 50% each
RP A gets 20GHz
RP B gets 20GHz
Example 2:
Root resource pool (cluster) : 40 GHz
RP A : Shares = 1000 (default "low")
RP B : Shares = 4000 (default "high")
So 25% for A and 75% for B
RP A gets 10GHz
RP B gets 30GHz
Note that resource pools should only be used for resources distribution and prioritisation and never for organisational purpose, this is the job of the folders.
It's in a nutshell, I recommend you very well explained articles by Duncan Epping :
Resource Pools and Shares - Yellow Bricks
Shares set on Resource Pools - Yellow Bricks