Abstract
As known that, Iraqi economy rely significantly on oil export, therefore this economy consider to be addiction to oil. Oil sector finance the most government expenditure. Aggregate demand in Iraq depends on government expenditure in turn government expenditure depends on foreign trade. The research highlight on components of aggregate demand in Iraqi economy and in what extent those components effect on the growth of GDP. Modern econometrics methods was used to analysis and test the relationship between dependents variables which represented by aggregate demand components and independent variable which represented by GDP growth and their conformity to the Keynesian model. The research concluded that there is distortion in aggregate demand components in effect to the GDP growth.
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