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Air conditioners use the physical properties of compressing gas into liquids and letting these liquids decompress back into a gas.
When you compress a gas into a liquid, heat is formed.
When you decompress this liquid, cold is formed.
Your AC compresses gas outside the house (makes heat) and then lets the compressed gas (liquid) enter into the house side of the AC. On the house side, the liquid is decompressed (makes cold). The decompressed gas goes back outside the house and the process is performed over and over again.
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