A generator can be either **AC (Alternating Current)** or **DC (Direct Current)**, depending on its design:
1. **AC Generator**: Also known as an **alternator**, it produces **alternating current**. The output current alternates direction, typically in a sinusoidal waveform. AC generators are commonly used in power plants and for electrical distribution.
2. **DC Generator**: It produces **direct current**, where the current flows in one direction only. DC generators are less common nowadays but were used in older systems and some specialized applications.
The main difference lies in how the current is produced and how the generator is built. AC generators use slip rings to transfer current, while DC generators use a commutator to ensure the current flows in one direction.