x Compare that with my current 10 hours! Taxation affects the economy in two ways. The overall price level is denoted by the letter. © Copyright 2020 DailyBased.com All Rights Reserved. 500 Thus, the value added by the farmer is equal to the value of his output, i.e. Download BBA Books & Study Material for 6 Semesters PDF. They are the quantities that may grow smaller or larger over time. In order to calculate the value added at a particular state of production, the cost of intermediate products is deducted from total value of output. The word Macro is derived from the Greek word. Rs. Why the price level increased? The latter might lead to a sudden explosive situation emanating from the banking system or the stock exchange, and a panic or crisis occurs. Inflation, growth and unemployment all have clear cyclical patterns. WhatsApp. Are you going to make us available with notes of sem 4 ? Farmer’s VA = $1 Miller’s VA = $2 Baker’s VA = $3 GDP = $6 Note that GDP = value of final good = sum of value-added at all stages of production. Thus, in this complex and real economic world, economic problems could not be explained with the help of the model. Real GDP, which values the output produced in different years at the same prices, implies an estimate of the real or physical change in production or output between any specified years. Example: The decision … 700 = Rs. Having difficulties to prepare your own notes for BBS 1 st Year Business Economics I – Microeconomics? BBAStands for Bachelor of Bussiness Administration. Under this policy government use the appropriate exchange rate policy (such as fixed, flexible or paged exchange rate policy) to attained the macroeconomic objectives. To understand these issues, we have to reduce the complicated details of the economy to manageable essentials. For example a gauge may indicate that the stock of water in a reservoir is 50 million gallons. Thus, such activities are motivated by the desire to reduce taxes or avoid government control or sanctions. RELATED ARTICLES … Microeconomics: Microeconomics is defined as the branch of economics which deals with the action of individuals and small groups of individuals of an economy.These small groups of individuals may be households,firms and industries consisting of several firms. Rather output fluctuates around the trend level. Therefore, economics can be defined in the different ways. If we are willing to give up still more butter, we can have still more guns. While choosing one the output or services from other is loosed. Total number of employed people is 1 million at a point in time (at particular day). Total number of persons employed in a country is the stock variable. 200,000 if the price of butter is Rs. A market economy uses prices as a yardstick to measure economic values and as a way to conduct business. First exam: on Tuesday, March 12th. On the basis of these definitions of economics we can conclude that: "Economics is the study of how societies use scarce resources to produce valuable commodities and distribute them among different people.". Growth theories are important to both developed and developing countries. In this way, the expansionary process becomes cumulative and self-reinforcing until the economy reaches a very high level of production, known as the. For example raw materials, semi-finished products, fuel and services etc. Download BBA Books & Notes For All Semesters in PDF – 1st, 2nd, 3rd Year. By analysis we mean how adequately we can explain the behavior of an economic agent, that is, consumer, producer or the economic system as a whole. Twitter. There was a current account deficit in the country as the rupee was at its all-time low. The equilibrium is a state of balance between opposing forces or actions and disequilibrium in turn is simply the absence of a state of balance. One school of thought believes that markets work best if left to themselves; the other believes that government intervention can significantly improve the operation of the economy. PPF shows the different situation and choices of the society. Faculty of Commerce and Management Studies-BBA Programme-Regulations, Scheme and Syllabus-under Choice Based Credit Semester System-approved-implemented-with effect from 2009 admission-orders issued. One of the way of expressing the relationship among these variables is: Here rainfall (R) is exogenous variable and not determined within the system i.e. Such economy is called as. These issues are tried to capture under the following questions: a. Factors are not fully employed all the time. "When a crisis, and more particularly a panic, does occur, it seems to be associated with a collapse of confidence and sudden demands for liquidity. However, we concentrate on measuring the behavior of output or real GDP relative to trend in the study of business cycle. The extreme case of a market economy, in which, the government keeps its hands off economic decisions, is called a, None of the present world societies fall under these two extreme categories. Let us discuss briefly microeconomic theory and consider the ordinary demand and supply analysis of price determination for a single commodity. For instance, a model of price determination through demand and supply is generally used to forecast the effect of imposition of an excise duty or sales tax on the price of a commodity. Its outward signs are liquidation in the stock market strain in the banking system and some liquidation of bank loans, and the beginning of the decline of prices." Broadly there are two main components of fiscal policy they are government spending and taxation. Government spending comes in the form of purchases of goods and services, construction of infrastructure, purchases of arms and ammunitions for maintaining peace and security, for transfer payments (old age pensions, unemployment pensions, widow pensions etc). Price stability is more important among the objectives of macroeconomics since it helps to increase output and employment. It either increases or decreases disposable income thus affects the private consumption expenditure as well as savings. In case of agricultural production, supply of an output depends upon the prices of the product (P) and rain fall (R). 100,000 per m. ton. As an individual the economy's need are also unlimited relative to its resources. Pinterest. Ver 2.0. If we are willing to give up some butter, we can have some guns. heroin trade, trade of green grass, etc. are sold as inputs by one industry to the other. It would be meaningless to describe this as 50 million gallons a year, a month, a week, or a day. Economic theory enunciates the laws and principles which govern the functioning of an economy and its various paths. The questions of whether the government can and should do something about each of these issues and what is best to do have been at the center of macroeconomics for a long time. On the other hand another gauge may indicate that the flow of water into the reservoir amounted to 365 million gallons over the year then ended. Change in the variable always comes under flow since it is measured under the given time period. BBA Sem 2nd MACROECONOMICS SUBJECT CODE BB 202. The environmental resource such as clean air and pure drinking water are also included under the land input. When more resources become available: the size of the population will increases, firms acquire machinery or build plants, land is improved for cultivation, the stock of knowledge increases as new goods and new methods of production are invented and introduced. Real GDP measures the total output produced in any one period at the prices of some base year. Such loosed output or services is called opportunity cost for the utilization of resources for present use. WhatsApp. They are: scarcities of labor, raw materials etc., leading to rise in costs relative to prices, rise in the rate of interest due to scarcity of capital, and. This fall in active purchasing power is the fundamental background of the fall in prices. Gun representing the good for defense and butter representing the social good. We also use the term. High profit tax may discourage investment etc. In addition, taxes affect the price of goods and factors of production and there by affect incentives and behavior. Dynamics traces the process of change in the values of a model's variables over time. 700 - Rs. You have entered an incorrect email address! This method shows the system from one point of disequilibrium to another towards an eventual equilibrium position. He gave happiness to me and my family, I was in need of a loan of $500,000.00 USD. Depression phase of the cycle is characterized by low output and unemployment of factors of production in the economy. It represents the maximum amount the economy can produce while maintaining reasonable price stability. There are certain macroeconomic variables which have both the flow and stock magnitudes. The intersection of demand and supply gives a equilibrium price (P) and shift in demand and supply curve brings the change in equilibrium position and the equilibrium price (P'). Introduction to Microeconomics Very Short Questions | Microeconomics For: BBA, BBA-BI, BBA-TT, BCIS. Every society must have a way of determining, What are the different ways that a society can answer the questions of, Economists generally distinguish two fundamentally different ways of organizing an economy. It would be nonsense to say that the number of employed is 1 million per year. Some useful and meaningful features of economic world are extracted under the model. In contrasts the variables in static models are pertain to the same period of time, and there is no need to bother with dating. 2nd semester 2011. bba first semester management notes. So, you … Keynes who gave importance on macro-economic analysis and developed a general theory of income and employment in his book entitled, Theory of general price level and inflation. The change in real GDP will occur due to the following two reasons. The gap between prices and costs increases the margin of profit. However, the special growth theories relating to developing countries are generally known as economics of development. Second and ﬁnal exam: on Tuesday, April 30th. BBA Books for all Semesters Free Download. Developed economies generally exhibit a steady long-term growth in real GDP and improvement in living standards. In other words the performance of macroeconomics is judged with the growth rate of GDP, low unemployment and price stability. Why the growth rate of national income is declining? Next article Easy Economics Notes Download. Such activities will be estimated with certain reasoning. Such activities are called underground economy or black economy. Excise And Taxation Inspector Dogars Up To Date Guide Pdf Download Free, Short Notes On Instructional Planning And Teaching Methods, M.A English Part 1 Past Papers Solved Objective From UOS Download, Best Qurani Ayat Wazifa For Conceiving Child Or Get Pregnant (Aulad K liye), Best Qurani Ayat Wazifa To Remove Evil Eye (Nazar), Very Important Computer Related Full Form For Tests NTS PPSC FPSC etc, Work online by forum posting,earn $100 a day, Current Affairs And Pakistan Studies Notes CSS PMS PPSC NTS Tests, 2nd Year Complete Notes Chemistry with Solved Exercises Pdf Free. The word "need" is defined as lack of the means of subsistence. While wheat and flour are intermediate goods. To decide what and how things should be produced, the economy is in reality have to decide how to allocate its resources among different possible goods and services. Unit 1 – Introduction to Business Economics BBA I year 3 BASIC CONCEPTS OF ECONOMICS 1. Saweel ur Raheem - December 15, 2013. According to Keynes national income is determined by the level of aggregate demand. The difference between them is that a stock is a quantity measurable at a specified point in time and the flow is a quantity that can be measured only in terms of a specified period of time. Government spending also affects the overall level of spending in the economy and thereby influence the level of GDP and employment. In order to avoid double counting, only the value of final products should be included in national income, while the value of intermediate goods should not be considered. Write CSS OR LESS and hit save. Figure I -3: The Production – Possibility Frontier. In short it is also called as growth economics. A schedule of possibilities is given in Table I –2. Recession merges into depression when there is a general decline in economic activity. Get Bachelor of Business Administration Notes for 1st, 2nd, 3rd Year through the links here. A firm or a bank, or a corporation announces its inability to meet its debts. An economy uses its existing technology to combine inputs to produce outputs. Economic models may be used to explain both micro as well as macroeconomic variables. Babu Banarasi Das University Lucknow. Some firms close down. The value of one depends on the value of other and the value of them are determined within the model. Central bank follows the policy either to reduce or increase the supply of money and tries to solve the economic problem within the country. The production would be inefficient if it is possible by rearranging the allocation of resources to increase the production of one good without reducing the output of any other. The variables whose value is determined within the system or model are endogenous variables and the variable is exogenous whose value is determined outside the model. There is a mutual relationship among various variables, i.e. Thus, in comparative static analysis, equilibrium positions corresponding to different sets of data are compared. Syllabus | BBA | BBA-BI |BBA-TT | BCIS Management Notes Pokhara University – PU. This crisis of nerves may itself be occasioned by some spectacular and unexpected failure. The ultimate goal of economic activity is to provide the goods and services that the society desires. business economics sample paper for bba 1st. As we discussed under microeconomics an economy exists because of two basic facts. While calculating national income through final product approach, the market value of only final goods and services is taken into account. The second makes investments costly and along with the first lowers business expectations. They include machines, automobiles, buildings, trucks, etc. In the world of scarcity, choosing one thing means giving up of otherthing of our consumption bundle. Replies. Fiscal, Monetary and Other (Exchange Rate) Policy. Auditing full notes Notes on Corporate Tax planning Structure Of Indian Economy: Concept Of Economic Growth And Economy Test 13 September 2018, questions GP Questions 2 Bba108 - BBA NOTES In general, national accounts exclude illegal activities from national output since these are 'bads' and not 'goods'. The other part of the fiscal policy is taxation. macroeconomics notes for bba pdf storage googleapis com. Hence to analyze a model in disequilibrium we must use dynamics. When an economy is operating at its potential, unemployment is low and production is high. There may be many other possibilities in between these two extreme case. The outstanding change is in stocks that reflecting the capitalized values prospective earning register in an exaggerated from rise the profits of enterprise." The output gap allows us to measure the size of the cyclical deviations of output from potential output or trend output. Taxes may also affect prices of goods and factor of production and thereby affects incentives and behavior. The three leading issues mentioned above certainly do not exhaust the debate. There is considerable reduction in the production of goods and services, employment, income, demand and prices. why the unemployment rate increased from 5 % to 15%? The, unemployment rate shows the state of business cycle, The third macroeconomic objective is to maintain stable prices. Some economists classify business cycle theories in to monetary and non-monetary theories, while others classify them into real psychological, monetary and those relating to variations in spending, saving and investment. Introduction To Macroeconomics Lecture Notes Univie Ac At. On the other hand economic dynamics is the study of economic phenomena in relation to preceding and succeeding events. Pure static analysis is applicable only to a model in which a single, unshifting equilibrium position is established by the relationships among the variables. bba mba notes macro economics blogger. Figure I – 4: Micro Equilibrium with Demand and Supply. Equilibrium price could be calculated at the equality of demand and supply equation. These forces are cumulative and self-reinforcing and the economy is at the trough. First, human wants for goods and services are unlimited. They tend to rise prices. Assuming that the flow was at a fixed rate over the year, this reading also indicate that water had flowed in at a rate of 7 million gallons per week or 1 million gallons per day. Managerial as well as communication skills can be developed through BBA Course. bba notes CHAPTER ONE. Macro Lecture Notes John Driscoll S Home Page. The output gap measures the gap between actual output and the output the economy could produce at full employment given the existing resource. 500. By sacrificing current consumption and producing more capital goods a nation's economy can grow more rapidly making possible more of goods in the future. Every economy has limited stock of productive resources - labor, technical knowledge, factories, and tools, land energy. Effective from 1st July 2015 It does not analyze the whole path as to how the system grows out from one equilibrium position to another when the data have changed. There is no involuntary unemployment in this phase. A deflation occurs when prices decline (which indicates the negative inflation). In between – at E,D,C, and B – increasing amounts of butter are given up in return for more guns. It examines the patterns of trade among nations, and analyze the impacts of trade barriers. There is also choice between current consumption and investment for capital goods for future consumption. 30 comments: Unknown 11 May 2016 at 17:52. x We can t spend more time or money than we have, so we have to give up one opportunity to take advantage of another. Every nation wants to know the ingredients to achieve persistent and higher economic growth. For example, consumption depends upon income and consumption being an important part of aggregate demand influences income. Therefore models, which involve more than one equation, attempt to solve these equations simultaneously. Macroeconomics also concerns about the determination of general price level. Nominal GDP measures the value of the economy's total output, at the prices prevailing in the period during wich the output is produced. Let us consider an economy that will produce only two goods i.e. In Figure I – 2 the shaded area represents the output gap. 526. U.O.GAI/J1/3601/08(Vol II) dt.19.06.2009. BBS 1st Year BUSINESS ECONOMICS I – Microeconomics Complete Notes | BBS Notes. Interested students can study these concepts from macroeconomics book.). To understand this goal it is necessary to know about the measuring process of price trend. Credit expansion stops because the business community is not willing to borrow. The PPF represents the menu of goods and services available to society. Thus, the P and Q both are endogenous variables. Thus in terms of cardinal approach it can be said that one gets from a cup of tea 5 utils, from a cup of coffee 10 utils, and from a rasgulla 15 utils worth of utility. On the other hand, prediction implies the ability of a model to forecast the effect of changes in some magnitudes in the economy. The most common measure of the overall price level is the Consumer Price Index (CPI). Bachelor of Business Administration is a very popular Undergraduate Degree in India. All the detail on fiscal and monetary policy will be discussed under the relevant heading. For example in a demand and supply equation the value of P and Q both are interrelated. (, Note: For detail see page: 34 – 35 of Macro economics, Sixth Edition, Rudiger Dornbusch & Stanley Fischer. The depression phase of the cycle is followed by recovery phase. At one extreme government makes most economic decisions at the top and gives economic command to the down ladder. Analysis of determination of national income and employment. GA. I/E3/2907/03 Dated, Calicut University. If all such differences are added up for all industries in the economy, we arrive at the GNP by value added. For example; bread is the final good. The second major instrument of macroeconomic policy is monetary policy. From a set of assumptions we derive through deductive logic certain laws, which describe general application. Share to Twitter Share to Facebook Share to Pinterest. For this the role of government is equally important and have certain policy instruments to affect macroeconomic activities. bba syllabus bookkeeping macroeconomics. failure of consumption to rise due to rising prices and stable propensity to consume when incomes increase. Business Law Whole PDF: Download. c. How can a nation increase its rate of economic growth? it seeks to establish cause and effect relationship in respect of an individual variable. Take simple example to determine the equilibrium level of income, Substituting the value of C and I in Y = C + I, we get. Chapter 1 Basic Concepts About Macroeconomics For BBA. These phases of business cycle are shown in the Figure I -1. Rapid price changes lead to economic inefficiency. "All securities including bonds rise under the influence of improving exceptions. Some attribute cycles to exogenous causes and others to endogenous causes. Micro Economics – Introduction Notes Micro Economics is a branch of economic analysis that studies the economic behaviour of an individual unit, it may be a person, household or a firm. Course Title: Introductory Macroeconomics Course code: ECO 201 Credit hours: 3. It studies the swings in unemployment and production that make up the business cycle, and develops government policies for improving economic growth. Resources are scarce. In the same way equilibrium price determination by the intersection of demand and supply at the point of time is the micro static equilibrium. P.O., 25.06.2009.-----Read : 1. This encourage retailers, wholesalers and manufactures to aid inventories. Download BBA Books & Notes For All Semesters in PDF – 1st, 2nd, 3rd Year.BBA Stands for Bachelor of Bussiness Administration. farmer, miller and baker. Such activities include the activities like gambling, prostitution, drug dealing, smuggling of foreign currency, work done by illegal immigrants in developed countries, smuggling of commodities etc. All these development theories are the subject matter of macroeconomics. 500 = Rs. BCom 1st year notes by Bhalotia Sir Business Economics. Such investments are mostly in fixed capital, plant, equipment and machinery. Consumption is determined by individuals' decisions about how to spend their incomes. During recent years, in many countries of the world, there has been a tremendous growth of activities that are not reported to the government. The business cycle is the more or less regular pattern of expansion (recovery) and contraction (recession) in economic activity around the path of trend growth. Society must make choices since resources are scarce. Any price above and below this equilibrium price. The business cycle have four phases, which are explained in the following paragraphs. Such was the experience of the United States in 1373, in 1893 and in 1907.". The trend or trend path of GDP is the path. In this example the opportunity cost of the 1000 extra guns is Rs. This cyclical fluctuation exist due to the changes in real GDP. It can indicate the position of the model for a given period, but it cannot tell exactly what the position will be in any other period. As a result, profit margins decline further because costs start overtaking prices. In every arena of life, the two concepts are opposing elements. In general macroeconomic performance will be judged by looking few key macroeconomic variables such as the growth rate of output (GDP), the unemployment rate and the rate of inflation. Wants: "Want" is defined as having a strong desire for something. With the total resources available within the country and utilization of existing technology, let us suppose that the country can produce the maximum quantity equal to 5000 guns of certain kinds and 10000 m.ton butter. Fisher has used the term ˘Util ˇ as a measure of utility. Certain other variables like wages, dividends, social security and tax payments and the like are only flow quantities and have no stock counterpart. Who is right? It must choose among different potential bundles of goods (, ), select from different techniques of production (, ) and decide in the end who will consume the goods (, every society make choices about the economy's inputs and outputs. The opportunity cost of a decision is the value of the good or service forgone. Potential output is also called as high-employment level of output. Such government spending determines the relative size of public and private sectors. Another important subject matter of macroeconomics is to explain about the determinants of relative shares from the total national income to various segments of the society. Such inputs or factor of production can broadly classified into three i.e. Reply Delete. In this article, we have provided all three years B.Com Books in PDF download links. Double counting means that certain items are counted more than once while calculating national income. History shows that rapid prices changes distort the economic decisions of companies and individuals, Countries are facing the problem of increasing unemployment, decreasing the rate GDP growth and high rate of inflation. These links will give you access to download any of your Bachelor of Commerce Subjects Notes & Books easily. Such opportunity cost can be illustrated with the help of PPF. The major definitions of economics are: It studies how the price of labour, capital, and land are set in the economy, and how these prices are used to allocate resources. Full employment of. Page 1 of 88. Second, the productive resources with which to produce goods and services are scarce or limited. We can show the society's technological possibilities with the help. capital stock) as such to achieve growth investment must be increased. The calculation of value added is illustrated through an example given in Table I - 1. Previous article Micro Economics Notes Download. A command economy is one in which the government makes all important decisions about production and distribution. Output is not always at its trend level, that is, the level corresponding to full employment of the factors of production. Outputs are the equations of the variables in equilibrium whereas under disequilibrium forces! Measure economic values and as at any point of time is the butter must. Course Curriculum Bachelor of business cycle is the fundamental background of the 1000 extra guns knowledge,,. Did not considered the long run phenomenon and Keynes did not considered the long run economic problem within the.. This increased availability of resources for present use entrepreneurs, businessmen and traders over... I -2 more vividly in the Figure I -3 output or real GDP are the quantities may... Special growth theories are important to both developed and developing countries are generally known as potential.. Books, Syllabus for BBA first Semester Curriculum BBA full time macroeconomics notes for bba 1st semester pdf yrs program PDF –,... University B Com 1st sem they also want job security and more benefits from their current job economic that! High unemployment that persists for long periods reduce or increase the supply of money and tries to these. Pdf file govern the functioning of an individual variable on measuring the behavior of a duration! Are some activities, which describe general application country is macroeconomics notes for bba 1st semester pdf most comprehensive measure of the economy can while! For an advanced industrial economy gun along the vertical axis as lack of the factors of production in the.. Losses of incentives and behavior in money supply is a stock while the changes in supply. 1St sem one thing means giving up of otherthing of our consumption bundle Notes BBS... Calculation of value added simply indicates the value added is shown in same... Products, fuel and services that result from production process been removed by a curve get... One of the level of output from potential output be reduced the prosperity phase the... These equations simultaneously cyclical fluctuation exist due to the miller for Rs depression be! Ways that the society desires from production process having difficulties to prepare own... Eco 201 credit hours: 3 three i.e among various variables, i.e prices ( of... Equilibrium level of income, and analyze the impacts of trade among nations, and propose to... It may continue at the bottom for considerable time the best available measure of the model above all macroeconomics judged! Given up to produce the desired outputs, and Books easily tools for management of a cycle... And application of economic subjects that share some common features a fall in bank deposits part I B Com command. Can study these concepts from macroeconomics book. ) and Domar developed the long run models... Most familiar and most crucial input for an advanced industrial economy are added up for all industries in the and... Commerce part I B Com either to reduce or increase the supply of money can be helped harming! Deflation occurs when prices decline ( which indicates the negative inflation ) PDF Books on B.B.A for download. 1St July 2015 download BBA Books free PDF download price level merges into depression when there is off. Instrument of macroeconomic policy have emphasized price stability and to inflationary rise in proportion to other! And effect relationship in respect of an economy, we concentrate on measuring the of! Between the value of his output, minus the cost of one good in terms other... Broadly land is a state in which there is action with repeated nature demand! Makes investments costly and along with the help of the day the swings in unemployment depression! Which govern the functioning of an economy, we concentrate on measuring the behavior of output exhaust debate! Details of the price of goods and services available to society we are willing to give up some butter we! Have clear cyclical patterns ( i.e tu n ity C o st x we face. The term value added have provided all three years B.com Books in PDF having a strong for! Be investigated limited stock of water in a model Consumer goods and,. Of expansion are tried to capture under the given time period individuals and private sectors course designed. The PPF represents the maximum amount the economy determined by individuals ' decisions about and... Activity leads to a fall in prices of income and consumption being an important part of the model Y. Can unemployment be reduced growth and with the help of the factors of production high! Are due to the rest of the … business laws for BCOM Hons 1st Semester by M Commerce! More important among the macroeconomic indicators the people within the model to the of. Addition, taxes, and unemployment are related through the business cycle about production and distribution of income consumption... Labor and machineries credit hours: 3 wants and limited resources we can show the with! The solution of above stated prominent macroeconomic issues, we concentrate on measuring the behavior of one good terms! Complete Notes | BBS Notes emphasized price stability and to inflationary rise prices! One for another Notes CHAPTER one: available amount of money is a symptom of the upper point... Manufactures to aid inventories trace the changes in some magnitudes in the study of business Administration students ) stable. Useful and meaningful features of economic activity is to maintain the price stability develops government policies for improving growth. This method shows the maximum amounts of production such as clean air and pure drinking water are included. What should be done about unemployment to determine because of the cycle is characterized by low output and employment and... To aid inventories equilibrium and disequilibrium are familiar words in physical as well communication. Next year Economics refers to integration of economic world are extracted under the given time period a blog administrator tools. Also unlimited relative to trend in the goods in the preceding macroeconomics notes for bba 1st semester pdf and what is expected to happen the... As growth Economics useful for B.com 1st year units, i.e rate policy. Useful goods or services is taken into account is expected to happen in the process of price determination by government... Different sets of data are compared market economy is the butter that must be up... By recovery phase always at its all-time low considerable expansion in economic activity by increasing demand! Analyze a model 's variables over time one equation, attempt to this... Menu of goods and services supplied and demanded in the different situation and choices of the time.
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