The Impact of Aggregate Supply Fluctuations on Inflation in Iraq During the Period (2004-2023): An Empirical Study
DOI:
https://doi.org/10.33095/vrzmy717Keywords:
Aggregate Supply, Inflation, NARDL, Oil Revenues, IraqAbstract
This research examines the relationship between aggregate supply and inflation in Iraq during (2004-2023) through deviations in aggregate supply that lead to changes in output and inflation. The core issue of the research lies in how any change in aggregate supply results in a shift of the aggregate supply curve from its initial position. This study employed a deductive methodology, theoretical frameworks, descriptive and quantitative assessments, and econometric techniques to analyze the connection between aggregate supply, which is treated as a dependent variable, and inflation, categorized as the independent variable. The findings of the analysis validated the hypothesis and confirmed a statistically significant association between the explanatory variable, identified as aggregate supply, and the dependent variable, recognized as inflation. Additionally, we outline a prospective research agenda and highlight the governance of oil revenues that aid in diversifying income sources to bolster resilience against shocks to aggregate supply. The core issue of the research lies in how any change in aggregate supply results in a shift of the aggregate supply curve from its initial position. This study employed a deductive methodology, theoretical frameworks, descriptive and quantitative assessments, and econometric techniques to analyze the connection between aggregate supply, which is treated as a dependent variable, and inflation, which is Categorized as the independent variable. The findings of the analysis validated the hypothesis and confirmed a statistically significant association between the explanatory variable, identified as aggregate supply, and the dependent variable, recognized as inflation. Additionally, we outline a prospective research agenda and highlight the governance of oil revenues that aid in diversifying income sources to bolster resilience against shocks to aggregate supply.
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