March 19, 1979

MONDAY, MARCH 19, 1979

The Joint Economic Committee has urged the Administration and Congress to combat inflation by encouraging savings and investment, the committee said in its annual report. In an apparent philosophical shift, the committee's report stressed relatively conservative economic means to fight inflation instead of advocating such liberal measures as tax cuts and direct spending. [Page D1.]

Pres Richard Levine resigns; resignation comes after some brokers threatened to sue exch over suspension of trading in Mar potato futures contract and liquidation of Apr and May deliveries (S)

Article examines rookie prospects for '79; illus (M)

US econ recovery turns 4 yrs old, March, making it one of longest business expansions on record; business cycle is described as 4-part pattern: period of econ growth, peak in growth, period of slower growth or actual decline and trough; although no 2 cycles ever look exactly alike, economists argue there is enough similarity in patterns of which parts of econ soften in advance of overall downturn for business cycles to be of use; economists, such as F Thomas Jester, Solomon Fabricant and Prof Philip Klein maintain that unusual length of current growth phase does not by itself mean downturn is near; areas economists watch for as indicators of econ slowdown listed; graphs on different leading indicators in terms of slowdown and expansion and charting recent business cycles (L)