This study provides an empirical assessment of the impact of variations in broad money supply, the official exchange rate, and the price index on nominal gross domestic product (GDP) in the Libyan economy over the period 2003–2024. The primary objective is to evaluate the nominal responsiveness of economic activity to changes in key monetary policy indicators and to investigate the nature, direction, and magnitude of their relationships in both the short and long run. A descriptive-analytical approach was adopted to outline the theoretical underpinnings of the study variables, while an econometric methodology was employed to examine the presence of cointegration and to estimate the dynamic interactions among the variables using the Autoregressive Distributed Lag (ARDL) model. The empirical findings confirm the existence of a long-run cointegrating relationship among the model variables, indicating a stable equilibrium path over time. The results further reveal that broad money supply exerts a strong and positive short-run effect, highlighting the short-term orientation of monetary policy in Libya. Moreover, the official exchange rate demonstrates a positive and statistically significant impact in both the short and long run. The GDP implicit deflator is also found to have a positive effect in both horizons, although its statistical significance appears only in the short run. The econometric and diagnostic tests conducted support the robustness, validity, and explanatory adequacy of the estimated model. In light of these findings, the study underscores the need to enhance the effectiveness of monetary policy instruments in managing liquidity, and to undertake comprehensive structural reforms in the banking, financial, and productive sectors to mitigate the short-run bias of monetary policy and strengthen its long-term impact on economic performance. .................................. Keywords: ................Monetary policy, economic activity, money supply, exchange rate, nominal GDP, GDP implicit deflator, cointegration, ARDL model.