Effects of fiscal policy on economic activity in Republic of Macedonia

The existence of fiscal policy largely influence the increase in economic activity. Namely, the more expanded process of taxation and the more you do the more costs the state is economically active. Maintaining fiscal policy is not at all a simple process, which is why economists are constantly present with their analysis of market demand and consumption and assess potential risks that could occur in terms of taxation and spending. The theme developed in this paper refers to fiscal policy that basically means government measures for the management of budget spending and taxation of its importance and effects on economic activity in a country or an economy, and separately making and review of the case of the Republic Macedonia and covers a period that is its objective of analysis in this paper. The effects of changes in public revenues and expenditures on economic activity - the question of fiscal multipliers and expansive fiscal policy in conditions of recession gap and tight fiscal policy under inflation gap and consequently this creates an overview of short-term fiscal policy, and long-term fiscal policy relating to economic growth.