Type 1 reasoning is automatic, reflexive, emotional, habitual, low effort and low capacity. It is also quicker and sometimes called the "old mind". Type 2 reasoning is effortful, reflective, cognitive, goal-directed, high capacity. It is slower than Type 1 and called the "new mind".
Often type 1 puts forward a response and type 2 reasoning overrides it completely. However, type 1 can also provide a range from which type 2 reasoning picks the (correct) answer. The answer: it can be both.