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Compressor works like a pump with moves hot refrigerant constantly while its running. 

Refrigerant pumped into the outdoor condenser coil first is converted into the liquid when it leaves the outdoor unit. 

Refrigerant passes through a metering device and coverts into vapor. 

 When fan blows air through the indoor coil (called evaporator) and during this process the air temperature normally drop around 20 degrees. 

Now the warm air becomes cold air and distributes throughout the home.

This process repeats until the house temperature reaches the desired temperature set at the thermostat.