How does Fitzgerald narrate the third chapter of The Great Gatsby?

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Nick begins by narrating the party from a distance, ruminating on the chronology of events that went into setting up the party up to the point where he actually is invited and attends. 

Nick delivers his description with specific details and uses these details, at the party, to create an almost comedic and impressionsitic narration of the party. 

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The narration is first person, from Nick's point of view. Nick is describing the party like an outsider. He does not fit into this world, and he is fascinated by it. Because first person is limited, our perceptions are limited. We see what Nick sees, or wants us to see.

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