Imagine an economy is in a stable state. Suddenly, a series of pessimistic economic forecasts leads to a widespread loss of confidence among business owners. As a direct result, firms across the country decide to cancel planned expansion projects, leading to an initial decrease in new capital spending of $100 billion. Several months later, economic data reveals that the total output of the economy has fallen by $400 billion. Using your understanding of how changes in spending affect the economy, explain the process that caused the final drop in total output to be much larger than the initial $100 billion reduction in spending.