The article explores how different types of taxes and government policies can affect the stability of the economy. By using a model that considers both demand and supply-side effects, the researchers found that including supply-side effects in fiscal policy can limit the range of parameters that keep the economy stable. They also discovered that when fiscal policy affects both supply and demand, inflation and output responses to shocks are more persistent. This study highlights the importance of considering both supply and demand effects in monetary and fiscal policy decisions to maintain stable inflation and output levels.