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Justified with an indent. My preference is the first paragraph of a chapter has no indent and after a blank line that denotes different time or scene, but I won't bother changing that if it's not, indented is ok.
Once in awhile I've used .5 em spacing between paragraphs and that was surprisingly not annoying at all and pretty nice to read on.
But always justified for me. I find the ragged right edge to be just visually disturbing for me.
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