Final answer:
The two factors in Schachter's theory of emotion are physical arousal and cognitive labeling. The Schachter-Singer two-factor theory suggests these factors combine to form emotional experiences.
Step-by-step explanation:
The two factors in Schachter’s theory of emotion are physical arousal and cognitive labeling. According to the Schachter-Singer two-factor theory of emotion, these two factors work together to create our emotional experiences. Physiological arousal is a necessary component, but it is the cognitive appraisal of the situation, or cognitive labeling, that determines the specific emotion we experience. This is based on the context in which the arousal occurs and can result in different emotional experiences even if the physiological response is similar.