Riding a national wave of dissatisfaction with President Reagan's economic policies, Democratic candidates for senator, governor and congressmen all won resounding victories in last week's Massachusetts elections.

Former Governor Michael S. Dukakis claimed about 60 percent of the vote and moved from his Kennedy School of Government post back to the Statehouse. Rep. Barney Frank '61, meanwhile, had a surprisingly easy time winning the reshaped Fourth Congressional District seat, besting Rep. Margaret Heckler by a three-to-two margin.

Sen. Edward M. Kennedy '54 (D-Mass.) also won re-election with more than 60 percent of the vote and Speaker of the House Thomas P. O'Neill Jr. romped to victory in the Eighth District with 74 percent.

In Cambridge, the Democrats won an even larger landslide, with its nominees for four county and legislative offices all walking away with prizes.

On referenda issues. Massachusetts voters decisively supported a nuclear weapons moratorium, endorsed controls on radioactive waste, made capital punishment constitutional and approved the state's bottle bill. They rejected a referendum calling for state aid to private schools.

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Dean of the Faculty Henry Rosovsky last week released a cautiously upheat annual budget, outlining new Faculty strategies for long-range financial planning.

The dean cited generous revenue from the $350 million Harvard Campaign, surprising stability in student aid expenses, and successful energy conservation efforts to explain a $205.000 surplus in the Faculty's coffers after the 1981-82 year, the Faculty's sixth consecutive surplus. Last year's budget report predicted a $312.000 deficit for 1981-82.

In addition, Rosovsky predicted a $200.000 surplus for the end of 1982-83, the first prediction of a surplus in recent years.

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Abolishing Dudley House and hiking room rents to encourage students to move off campus are two of the proposals officials are discussing in an effort to improve life for undergraduates who cannot live in Harvard housing, a ranking University Hall administrator said last week.

Eliminating Dudley, for 25 years the center for off-campus students, would allow the non-residents to be assigned to regular Houses and might involve them more directly in undergraduate social and academic affairs, the administrator said.

Another drastic policy shift being discussed is an increase in room rents designed specifically to encourage more students to move out of the Houses and form a larger, more cohesive off-campus community. This proposal also includes the idea of providing increased financial aid benefits to those students who would agree to move out of University housing.

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A recent Institute of Politics (IOP) Forum has sparked complaints from two of the participants over the slant and content of the proceedings. IOP fellow Betty Friedan and assistant professor of History Donald Bell addressed a packed Forum on "Feminism and the Family" without knowing the event was co-sponsored by the Democratic Socialist Alliance (DSA).