Arsene Wenger had seen his side beaten by Borussia Dortmund and Chelsea in their last two home games, but they prevailed through goals from Santi Cazorla and Aaron Ramsey to confirm their role as the team to beat.
Liverpool arrived at the Emirates Stadium hoping to leapfrog Arsenal to the top of the table, but the hosts took a 19th-minute lead when Cazorla hooked home after an initial header came back off the post.
Luis Suarez spurned two late chances for the visitors, but Arsenal were otherwise largely untroubled as they increased their advantage over second-place Chelsea and third-place Liverpool to five points.
Earlier, Manchester United maintained their recent momentum by winning 3-1 over Fulham at Craven Cottage to record a fourth consecutive victory in all competitions.
David Moyes's side effectively wrapped up the game inside 22 minutes through goals from Antonio Valencia, Robin van Persie and Wayne Rooney. Alex Kacaniklic pulled a goal back for Fulham in the 65th minute with a shot that deflected in off Rooney, but the champions saw out a victory that elevated them to within two points of the top four.
"It can take time to settle in and it has for us, but Manchester United usually make slow starts and get better as the season goes on."
Manchester City moved into the Champions League places after bouncing back from a 2-1 loss at Chelsea last weekend by demolishing Norwich City 7-0 at the Etihad Stadium.
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