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Definition 1:
Extreme foolishness .
Examples:
Quitting her job was an act of sheer/pure lunacy. [=madness]
Definition 2:
Something that is very foolish .
Examples:
Quitting her job was lunacy.
It would be lunacy [=madness] to try driving home in this storm.
His idea was considered total/sheer/complete lunacy.
Definition 3:
Extreme mental illness :insanity.
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