In this circuit, a 7805 IC is used to regulate 9V down to 5V. As you know, the voltage entering has to be at least 2V higher so that a 9V battery is used here. Two 0.1 microfarad capacitors are there to filter out any noise. Supposedly, a clean DC signal can be produced. The 5V DC voltage powers a LED light. The 200 ohm resistor limits the electric current to the LED (20mA).
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