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What is typesetting?

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It seems to me that it is a reference to a bye-gone era when printing presses used by newspapers and such were operated by manually laying the letters out before the printing began. I think the same term applies today to preparing a text for printing using a computer. The term as used today refers to the preparation of text and includes making informed choices of typeface, point size and leading to enhance the readability and message.
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What is indentation in typesetting?

There are two main types of first-line indent: normal and hanging. A "normal" indent indents the first line, as shown here, an indent of one centimetre:  Lorem ipsum dolor si