Greece's usage of fiscal policy to avoid the meltdown and the debt crisis As a result of the combined effects of the global financial crisis and the sovereign debt crisis, the GDP of Greece declined from \(€ 281. 44\) billion in 2008 to \(€ 176. 5\) billion in 2015.

a. What is the percentage change of GDP during this period?

b. By how much should autonomous expenditure have risen in order to prevent the slide in the GDP of Greece, given that marginal propensity to consume is 0. 6 ?

c. In reference to your reply to part (b), explain why the Greek Parliament refused the austerity measures that lender nations sanctioned for Greece.

d. The Greek reform program aimed to improve incentives to private investors. By how much do these incentives alone improve GDP if they have increased investment by \(€ 15. 5\) billion?