From Cambridge to Eternity: “Afterlife in Eternity”

 

According to conventional wisdom, the time flies like an arrow. That might be very true in Eternity. In other words, the time dimension (T for time) and the space dimension (L for length, L² for the venue, L³ for the space, L⁴ for the venue’s square, L⁶ for the double space, and the like) are mutually compatible and substitutable.

             However, the rest of us still do not know whether the time can be raised to the second order (T², time’s square) or the third order (T³ time’s cubic).

 

Marginal Propensity to Consume

                     Eternal Income Accounting (in trillion thalers per block from the River)     

Soul	Monetary Income	“Consumption”			“Saving”
		Spending	MPC*	APC*	Discarding	APD*
Blk #1 Jane, Post Mortem	100	60	NA	0.60	40	0.40
Block #2   Jack, PM	200	140	0.80	0.70	60	0.30
Block #3    Jill, PM	300	220	0.80	0.73	80	0.27
Block #4   John, PM	400	300	0.80	0.75	100	0.25
“Nominal” GHI* ≡ GHP*	1,000	720	↑Handily Assumed	0.72	280	0.28

                 *MPC for Marginal Propensity to Consume; APC for Average, APD for Propensity to Discard                                            GHI for the Gross Heavenly Income; GHP for the Gross Heavenly Products

It feels extraterrestrial but still normally ordinary that the lower the individual income the lower the Average Propensity to Consume. As an Eastern saying has it, Jane PM might when hungry be licking fingers instead of eating food.

Multiplier Effect. Return Jane to AM in Cambridge, “No questions asked”!  Immediately thereafter, the Heavenly economy suffered from recession due to Aggregate Demand "ineffective" by 100. 

               Blessed, the heavenly economy got a helicopter drop of 100 trillion thalers. As the money travels across hands, the drop of 100 would multiple and stack up to 500 trillion thalers. After all, the fiscal multiple were 5.00= [1/ (1.00- 0,80)].

             “See I Told You So.” While they were sleeping, the real GHI were stabilized from 900 to 1,400.

             The rest of us on the sidewalk will take a note: Whether a fiscal helicopter drop or the fiscal project of “digging a ditch just to refill it,” the first round would be the same in producing no “final goods and services” at all. Therefore, (supposedly) 500- 100 (in nominal money of 1st round) = 400 (in real quantities). Viva, we shrank the multiplier from 5 to 4! 

                A lining in the cloud for them: The economy is still in over-heating with 1,300 (= 1,400 - 100) vs. 1,000 (trillion thalers) in the beginning before Jane's resurrection.  

The Keynesian Cross. Expectation coexists at the same time with reality when the time flies across space. It be heavenly natural that the expect GDP ante mortem and the real GDP post mortem made a Keynesian Cross in Earthly macroeconomics. In the first place, ex post when time stops equals ex ante. If in an empirical science, the effect equals the cause.

Law of Diminishing Returns. This if on Earth applies, if at all, across space, while it in Eternity holds true all across.

The Solowian Growth. Yes, growth is across space in Eternity. At the end of the time, GHP surely became 100 trillion times greater or even still greater.

             Dream, Dream, Dream: We are in the Eternity, stupid!

The IS-LM. If on Earth, the LM curve is as at a moment while IS curve is over the year. Never mind in here Eternity, an instant equals a year equals a century equals a millennium equals Eternity. Don’t forget to remember that the time in Eternity is as irrelevant as in Earthly macroeconomics. 

The AS-AD. No such thing as “fallacy of composition”: They can demand (q^d in the market or AD in the economy) something and anything for free, individually without money as well as collectively without AS.

General Equilibrium. No such thing as “fallacy of composition”: Each and all are resting in peace, after all.

     Rachmaninov: The Isle of the Dead, Symphonic poem Op. 29-