Concept:
A transformer is an electrical device used to change the voltage level of alternating current.
Step 1: A transformer works on the principle of mutual induction.
Step 2: It can step up or step down AC voltage.
Step 3: A step-up transformer increases voltage, while a step-down transformer decreases voltage.
Step 4: During this process, the frequency of AC supply remains unchanged.
Step 5: Therefore, the device is called a transformer.
\[
\boxed{\text{Transformer}}
\]