Past exam of the mathematics course of the University of Cambridge / 2002 / iii / Paper 23 / 3 / d / Solution

Let $S$ consist of all universal-existential sentences entailed by $T$, and take $A_0\models S$. By (c), there is an existential embedding of $A_0$ into $B_0\models T$. By (b), $B_0$ embeds in $A_1$ with $A_0\preccurlyeq A_1$. After replacing structures by isomorphic copies, arrange these maps as inclusions. Since $A_1\equiv A_0$, it also satisfies $S$ and the construction can be repeated. This producesThe two interleaved chains have the same union $D$. The elementary chain theorem gives $A_0\preccurlyeq D$. The $B_i$ are an ordinary chain of models of $T$, so the assumed closure under unions of chains gives $D\models T$. Therefore $A_0\models T$. This provesConversely, universal-existential axioms are preserved in such unions: a finite universal tuple occurs in one stage, which already supplies its existential witnesses. The quantifier-free matrix has the same truth value in that stage and in the union. This also explains the inductive first-order theory characterization.