“People” in the first and “they” in the second part, referns to the same subject(s)

The first part of the sentence ‘Because people believed he was evil’ is a dependent clause. It modifies the word ‘they’. It tells something about the people who believed Loki was a mischief maker. The subject of the sentence is ‘they’. It’s the thing in the sentence that does the action. The action is calling Loki a mischief maker. Any sentence like this is easy to spot because part of it comes in front of a comma. In a simple sentence like ‘John loves Mary’, there are no commas, therefore no dependent clauses. A dependent clause will never contain the subject of the sentence. A sentence like ‘Because she is pretty, John loves Mary’ has a dependent clause in front of a comma. Simply look at the sentence as if it had nothing in front of the comma. That will make the subject of the sentence easy to spot.

Frankly, I think They is the subject of the sentence.

If you switch the sentence around, you will see what I mean.

They called Loki a mischief maker, because people believed he was evil.

If it’s Loki, it should go something like:

Loki was called a mischief maker, because people believed he was evil.

Sentence is incorrect. Loki is the subject of the sentence. “Because people believed he was evil” is a participial phrase and must modify the subject – Loki. Your sentence contains a dangling participial phrase and the sentence needs to be revised to read: “Because people believed he was evil, Loki was called a mischief maker.”

Loki is the subject of the sentence, in my opinion. If we dropped the first part of the sentence altogether, so it read “they called Loki a mischief maker”, we don’t really have an idea as to who “they” are, so “they” can’t be the subject. Besides, the subject is a NOUN if I remember correctly, and “they” is not a noun.

people (believed (they) called Loki a mischief maker.

loki is the subject of the sentence

Loki.

if ur asking for the complete subject.. the answer is “they called Loki a mischieft maker” but the main subject is.. “Loki”

Interesting responses above me.

I plump for they, people as being the main subject of your sentence.

But what a hoohaa it has provoked…..well done!