The Battle of Armageddon

Is the Battle of Armageddon a physical battle that will be fought in the Valley of Megiddo? Or is it a spiritual battle?
What do the terms "Egypt" and "Babylon" symbolize in Revelation? (Rev 11:8; 17:5)
How does the description of the fall of Babylon, as a result of the sudden drying up of its Euphrates waters (Rev 16:12,19) allude to the ancient deliverance of Israel from Babylon?
 

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