Each processor is running at the the specified GHz. Instead of each processor being a separate chip, they are both on the same dye along with some other innovative design related to the cache, power consumption, etc.
A dual core chip is basicly EXACTLY like a dual processor machine. With dual core, certain elements of the processors structure are shared across each chip. It's only technical innovation... a better machine.
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What is the technical definition of a Dual Core?
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