CPU usage is the fraction of the time the processor spends time thinking as opposed to idling. CPU load that approaches full makes time-critical applications that deal with controls or output to sound and video unresponsive because the operating system has to decide which program competing for the time to pause.
Memory is a temporary storage that holds the data that each program is currently operating on, similar how you’d arrange books and notes on a desk. If the memory becomes full, then the excess data is temporarily written to a disk and swapped for another piece of data as needed, which is relatively slow. An analogy would be taking a stack of notes and carrying them to another room.
More memory permits to keep more programs open simultaneously and Alt-Tab between them, and to run more recent versions that consume increasingly more memory.
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