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what is the meant by the statement "A computer system supports 32-bit virtual addresses as well as 32-bit physical addresses " , its confusing. I know there is memory management unit(MMU) which does the converstion of virtual address to physical but i am not able to understand what does that statement actually mean? Please help !!! Thanks in advance.

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In a nutshell this phrase means: only 4G of physical RAM is supported by hardware and each process can have 4G of virtual memory (so sum across all processes > 4G). Virtual memory will consist of some amount of physical RAM and some amount of swap file.