Clearly taxation, tax revenues and regulations interact in monetary policy, to get handle on this read Wikipedia: "Supply-Side Economics", which covers several aspects of achieving short-run equilibrium. Focus your attention on how the approaches covered in this reading relate to shifts in the supply curve from the perspectives of macroeconomics and microeconomics. Essential to these approaches are changes in tax rates and regulatory burden.
Then, read Wikipedia: "Laffer Curve", about how tax revenues relate to tax rates.
Having read these texts, jot down any of your reflections, thoughts or questions on this subject in a WeNotes post.
