Analysis of Aggregate Expenditure Variables in Iraq for the period (2003-2012)

Abstract

Abstract:The aggregate expenditure has a great importance whether on the microeconomics or macroeconomics theory . No doubt that economic instability takes place of unexpected fluctuations in aggregate expenditure (aggregate demand) . Therefore the effective administration of the aggregate expenditure variables (family consumption , government consumption , and investment expenditure ) leads in short term to end up or at least to lessening , on one hand , the sharpness of economic periodical fluctuations and controlling in a long term , on the other hand , the fluctuations which allowed in economic enterprise . To sum up we can say , in this domain the importance of economic politics appears in affecting these variables and in achieving two fundamental aims : maintaining full employment and avoiding the great changes of prices , i.e. avoiding depression and inflation .So the research analyzes the aggregate expenditure variables in Iraq (2003-2012) by using the method of principal components to explain the aggregate expenditure by the most effective principles and to determine furthermore the proper projection and outliers .This will serve to know how the state administrate the aggregate expenditure and to know how the decision makers adopt the proper and effective politics which concentrate on primacy of expenditure to achieve an economic stability and to increase the economic growth .