Can the Android emulator record and play back audio using pc hardware?

Yes, it can.
On Mac OSX, you must set the microphone on the emulator settings, after it’s opened.

While the emulator is opened, on the right side bar (where the volume buttons are localized), click on the three dots (last button of the list) to open the emulator settings.

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On the settings screen (called “Extended controls”), select Microphone and turn on the option “Virtual microphone uses host audio input“.

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