Explanation: Power factor correction aims to bring the voltage and current waveforms in an AC circuit back into phase, ideally achieving a power factor of 1 (unity). Reactive components cause the current and voltage to be out of phase, leading to inefficiencies. A **lagging angle** occurs when the current lags the voltage, which is characteristic of inductive loads (e.g., motors, transformers). To correct this, **capacitance** is added to the circuit. Capacitors draw current that leads the voltage, effectively counteracting the inductive lag and bringing the current closer to phase with the voltage. Conversely, a **leading angle** occurs when current leads the voltage, typically found in circuits with excessive capacitance. To correct this, **inductance** is added. Inductors draw current that lags the voltage, which offsets the capacitive lead and helps align the current and voltage waveforms. Therefore, both inductance and capacitance are employed for power factor correction, depending on whether the circuit exhibits a leading or lagging reactive component.