Understanding each component of a web application architecture
Any  basic server architecture has three layers. On one end is the web server, which fulfills requests from clients. The other end is the database server, where the data resides.
In between these two is the application server. It consists of the business logic required to interact with the web server to receive the request, and then with the database server to perform operations. 
In your configuration, the WSGI serve/Flask app is the application server.
Most application servers can double up as web servers.
Here is a scenario for a system where I am trying to understand what is what:
I'm Joe, a novice programmer and I'm broke. I've got a Flask app and one physical machine. Since I'm broke, I cannot afford another machine for each piece of my system, thus the web server, application and database all live on my one machine.
I've never deployed an app before, but I know that a server can refer to a machine or software. From here on, lets call the physical machine the Rack. I've loaded an instance of MongoDB on my machine and I know that is the Database Server. In order to handle API requests, I need something on the rack that will handle HTTP/S requests, so I install and run an instance of NGINX on it and I know that this is the Web Server. However, my web server doesnt know how to run the app, so I do some research and learn about WSGI and come to find out I need another component. So I install and run an instance of Gunicorn and I know that this is the WSGI Server. 
At this point I have a rack that is home to a web server to handle API calls (really just acts as a reverse proxy and pushes requests to the WSGI server), a WSGI server that serves up dynamic content from my app and a database server that stores client information used by the app.
I think I've got my head on straight, then my friend asks "Where is your Application Server?"
Is there an application server is this configuration? Do I need one?