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AC, when you're going to test a product which cannot tolerated the power source in your home. ex. in testing a 15A bulb, you cannot test it directy to the wall plug in your home instead you use AC tester(alternate current) to convert the supply to its limit or else it will fry your bulb. DC(direct current), when you're testing a high voltage product and it can tolerated the power source from your wall plug.

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