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In an AC circuit, resistance causes energy dissipation in the form of heat, leading to a reduction in the overall efficiency of the circuit. It affects the phase relationship between voltage and current by causing them to be out of phase; the current lags behind the voltage. This results in a decrease in the power factor, which can affect the performance of AC devices. Additionally, higher resistance can lead to reduced current flow, impacting the circuit's ability to deliver power effectively.

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