An air handler is the indoor section of an air conditioner or heat pump. It is a metal "box" that contains the indoor blower, evaporator coil, controls and in some cases an electric heat coil (similar to a toaster coil). The air handler is connected to the supply & return ductwork and piped to the outdoor air section of the A/C or heat pump. Oil & gas furnaces are not normally referred to as air handlers.
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