How does a generator use the effect you noticed in the pickup coil to generate electrical energy? What energy transformations are taking place? Why does a generator make alternating current? What change would have to be made to make direct current?

Movement of Electrons in opposite direction of the rotation of the pickup coil leads to the direction of Electrical energy ( Alternating current ).

Explanation:

For a Generator to generate electricity, Electrons that is found in the rotating coil of the Generator will experience some sort of force that makes them to start moving in a direction that is perpendicular to the direction of the rotating/pickup coil found in the Generator.

The conversion of mechanical energy (Rotation of the pickup coil ) to electrical energy takes place in the Generator

The generator makes an alternating current because electrons move in opposite direction of the rotating coil

In other to generate a Direct current using a generator we have to replace the slip rings with commutator.