Final answer:
During a recession, the U.S. Congress is likely to enact expansionary fiscal policy, such as tax cuts, to stimulate the economy, increase real GDP, and decrease unemployment, while also considering the long-term effects of deficits and debt.
Step-by-step explanation:
When the economy is operating at a point like point C, which is indicative of a recessionary gap with high unemployment and low output, the U.S. Congress is more likely to follow expansionary fiscal policy. This typically involves measures such as tax cuts and increased government spending to stimulate economic growth. An example of this is the tax cut passed during the 2001 recession. These actions aim to shift the aggregate demand (AD) curve to the right, leading to increased real GDP and reduced unemployment. It is important to note that fiscal policy decisions are often influenced by political rhetoric and public approval, and they must take into account the long-term implications of deficits and debt on the nation's economic health.