Final answer:
Incremental changes to policies are gradual adjustments made within the existing framework, whereas fragmented changes respond to specific issues in a piecemeal manner. Fiscal policy changes involve adjustments in government spending or taxes, while non-fiscal changes might include regulatory adjustments or changes in monetary policy. An example of incremental fiscal policy is adjusting tax rates slightly, and an example of fragmented policy is the introduction of a new tax credit for a specific sector.
Step-by-step explanation:
Incremental changes to policies refer to small, often gradual adjustments made within the existing framework of public policy. An example of incremental change in fiscal policy might include slight increases or decreases in government spending on education or small adjustments to income tax rates to address budgetary concerns. Such changes refine current policies without overhauling the entire system.
Fragmented changes, on the other hand, can be seen in policies that are altered or implemented in a piecemeal fashion, responding to specific issues without a comprehensive plan. An example of fragmented change could involve implementing a new tax credit for a particular industry in reaction to an economic downturn, affecting only a portion of the policymaking arena.
Examples of Fiscal Policy
Examples of changes in federal spending and taxes that are considered fiscal policy include increasing infrastructure spending to stimulate economic growth or adjusting tax rates to influence consumer spending and investment. Non-fiscal policy changes might involve regulatory adjustments or changes in monetary policy enacted by the central bank, such as altering interest rates or reserve requirements for banks.