As the coil of wire between the two magnets is spun, the generator effect occurs as the coil moves relative to the magnetic field, cutting through magnetic field lines, causing p.d to be induced onto the wire. As the wire is connected in series to the circuit and each end is connected to a slip ring that carries AC output and allows for current in the coil to change direction in the magnetic field, AC is induced in the coil.
- Just revising for my Physics exam ( im Yr 11), should be able to get full marks with this level of detail. Hope this helped!