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To simplify the expression using the distributive property, we'll need to distribute the 1/2 to both terms inside the parentheses.
First, distribute the 1/2 to 1/2y:
1/2 * 1/2y = 1/4y
Next, distribute the 1/2 to -3/4:
1/2 * -3/4 = -3/8
So the simplified expression is:
1/4y - 3/8