when current lags behind voltage how does it affect the
circuit.In other words what is the significance of lagging
current?

Answer Posted / karl

It is the circuit(type of) that affects whether current
will lead of lag voltage. An inductive circuit will cause
current to lag voltage due to magnetic fields that are
expanding or contracting in coils of wire. These fields
that expand and contract creates a back EMF that oppose the
current that is being applied to it and creating the
magnetic fields. The significance of this means that the
applied voltage will lead the the current and hence a power
factor now needs to be taken into account in this circuit.
A P.F. of 1 means that voltage is in phase. However with a
inductive circuit we will have a P.F. less that 1 and
lagging. e.g. maybe 0.75 lagging.

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