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"AC" is just a scientific term that refers to the fact that this generator produces electricity in an Alternating Current as opposed to "DC" which refers to Direct Current. Commonly, the plug outlet on the wall is AC, and the little black box electrical adapter for your cordless telephone is changing that AC current into DC current for the phone to work on. The phone line in your house runs on 24 volts DC, where the wall sockets are 124 volts AC.

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