Python does not (yet!) provide an intelligent input line editing facility, so you have to type a tab or space(s) for each indented line. In practice you will prepare more complicated input for Python with a text editor; most text editors have an auto-indent facility. When a compound statement is entered interactively, it must be followed by a blank line to indicate completion (since the parser cannot guess when you have typed the last line). Note that each line within a basic block must be indented by the same amount.
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http://docs.python.org/tut/node5.html#SECTION005200000000000000000