The Economy
The economy was stronger than expected in the fourth quarter, and economists said that a decline in the first quarter decline was now unlikely. The Commerce Department reported that the economy grew at a 5 percent annual rate in the last quarter and that the G.N.P. was almost exactly the size it was a year earlier, after adjustment for inflation. The fourth quarter growth is expected to intensify the debate over the timing of a tax cut. (Page D1.) Taxes should not be cut as sharply as the 30 percent proposed by President Reagan, and any reduction should be stretched over a period exceeding three years, Arthur F. Burns told the Senate Budget Committee. Meanwhile, Mr. Reagan's budget director, David A. Stockman, said that an economic strategy ''based on temporizing and gradualism'' was ''a recipe for failure.'' He promised ''a fullthrottle, four-year plan'' that would jolt the economy. (D1.)