Let O be the center of the inscribed circle. Let E be the midpoint of AB, and let F be the midpoint of CD. Draw segments AO, BO, CO, and DO. Since ABCD is an isosceles trapezoid, ∠ABE=∠CBE and ∠DCE=∠EDF, so triangles ABE, CBE, DCE, and EDF are all isosceles.
Since AE=BE, CE=DE, and AO=BO, triangles AEO, BEO, CEO, and DEO are all congruent. Therefore, OA=OB=OC=OD=r, where r is the radius of the inscribed circle.
Let E′ be the foot of the altitude from E to AB, and let F′ be the foot of the altitude from F to CD. Since triangles AEE′ and BEE′ are both right isosceles triangles, AE′=BE′=r, and similarly, CF′=DF′=r. Therefore, the sum of the lengths of the segments from E to D is: [ EE' + ED + DF' = 2r + x + 2r = x + 4r. ]
Similarly, the sum of the lengths of the segments from F to B is y+4r. Since ABCD is an isosceles trapezoid, the sum of the lengths of the segments from E to D is equal to the sum of the lengths of the segments from F to B. Therefore, x+4r=y+4r, so x=y. Hence, the radius of the inscribed circle is sqrt(xy).