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Vaseem experienced excessive fear while flying because he interpreted his rapid heart rate, shallow breathing, and heavy perspiration as a reaction to the imminent danger of a plane crash. When his psychotherapist convinced him that this physical arousal was simply a harmless reaction to acceleration, cabin pressure, and confined space, his fear of flying was greatly reduced. The reduction in Vaseem's fear is best understood in terms of
Keynesian Model
An economic theory proposed by John Maynard Keynes, suggesting that aggregate demand is the primary driving force in the economy, and advocating for government intervention to manage economic fluctuations.
Classical Theory
An economic theory that emphasizes the importance of free markets, competition, and the belief that markets, through the forces of supply and demand, will naturally regulate the economy.
Employment
The condition of having a paid job; the total number of people currently employed in the economy.
Interest Rate Effect
The impact that changes in the interest rate have on consumer spending and investment due to the cost of borrowing money.
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