RAM = Random Access Memory. That's the volatile high speed memory that is used inside a computer that lets you store internal applications and data. Everything written to RAM is lost when you turn off the computer, so usually, important data is written to a long-term storage device, such as a disk or "Flash Memory". CPU = Central Processing Unit. It is also sometimes called the ALU or Arithmetic Logic Unit. It's the part of the computer that makes decisions and causes things to happen. The CPU has built in instructions that allow it to perform some very basic tasks, such as: Add the contents of register 1 to the contents of register 2 and store the results in register 2. If the contents of register 1 are greater than the contents of register 2, continue execution of this program at line 101, otherwise continue execution at the next line. There are many such "low level" commands that are executed by the CPU, and when these simple commands are being executed at a rate of over 1 million instructions per second, you get some pretty amazing results.
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