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Question

How is balance of carbon dioxide and oxygen maintained in the environment?

Answer

Oxygen is required by all living beings for respiration and also for burning materials. Thus, it is used up in the breathing and burning. Oxygen is given out by the plants during the process of photosynthesis. 
The plants take up carbon-dioxide during photosynthesis. The carbon dioxide is released by the animals during the process of respiration. Thus the balance of oxygen and carbon dioxide is maintained. 

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