Read the passage carefully and answer the questions based on the passage:

Determination of Income and Employment

When, at a particular price level, the aggregate demand for final goods equals the aggregate supply of final goods, the final goods or product market reaches its equilibrium. Aggregate demand for final goods consists of ex ante consumption, ex ante investment, government spending etc. The rate of increase in ex ante consumption due to a unit increment in income is called marginal propensity to consume. For simplicity, we assume a constant final goods price and constant rate of interest over the short run to determine the level of aggregate demand for final goods in the economy. We also assume that the aggregate supply is perfectly elastic at this price. Under such circumstances, aggregate output is determined solely by the level of aggregate demand. This is known as the effective demand principle. An increase (decrease) in autonomous spending causes aggregate output of final goods to increase (decrease) by a larger amount through the multiplier process.

A decrease in autonomous spending causes aggregate output of final goods to _____ through the multiplier process.

Decrease by large amount.

The correct answer is Option (2) → Decrease by large amount.

As stated in the passage, a decrease in autonomous spending (such as investment or government spending) leads to a larger decrease in aggregate output through the multiplier process. The multiplier amplifies the initial change in spending, causing a greater overall impact on total output.