The answer is:
Liz, who could always make people laugh, was loved by thw whole block.
An adjective clause has a formula: relative pronoun or adverb + subject + verb
The relative pronoun here is "who"
subject= people
verb= laugh
Other relative pronouns are: whom, whose, that, which. For adverbs: when, where, why.
It also answers: What kind of person is Liz? This fufills its function as an adjective. Other functions of an adjective answers: Which one? How many?