What are the policies the government implements to reduce unemployment and inflation?

It depends on what government you're asking about. If you want a specific answer, you'll have to write a specific question.

But some examples of things that the US Government does(doesn't do, but really should) are lowering the corporate tax, invest in small business, and create a business friendly environment.

The United States, unfortunately is no longer business friendly. Well, specifically small business friendly which is what our economy depends and thrives on. The middle class and the rich are the main investors and entrepreneurs of our country, but if we tax them, they stop investing. All this about "spread the wealth" will NEVER save us. We need to keep the Bush Tax Cuts, lower our corporate tax from a extremely intimidating(and approximately) 36%(which by the way, Canada's is 15% and still dropping), invest in small businesses, and recreate the Land of Opportunity. Investing in industries(like the Auto Industry) won't do us any good. We're basically throwing our money away. If we invest in small business, then they'll be able to hire which will mean more money in circulation and our economy will pick up again. That includes our big industries like the Auto Industry and our businesses that went that went overseas and to Canada and Mexico will come back.

Makes sense, right?

I'm not trying to be ignorant at all, but I don't know how to make that any simpler. Honestly, I don't.

p.s. I'm going to add to my own answer.

Putting restrictions on small businesses and their owners is what is choking our economy to death. Just look at places like Singapore. They have a free market and their economy is one of the most successful in the entire world!

Call me crazy, but whatever is going on in the US right now is crap.