This paper looks at how government spending and tax changes affect the economy. The researchers used a complex model to estimate the impact of these policies in the US. They found that increasing government spending has a positive effect on the economy, with a multiplier of 1.12. Tax cuts take longer to show their impact but can be more effective in the long run, especially for boosting investment. Different ways of funding government spending and expected monetary policy can also change how effective these policies are. The study also looked at the impact of a specific government stimulus package from 2009.