The action of lithium aluminum hydride (\( \text{LiAlH}_4 \)) in ether on acetamide reduces the amide group to the corresponding amine. In this case, acetamide (\( \text{CH}_3\text{CONH}_2 \)) is reduced to ethylamine (\( \text{CH}_3\text{NH}_2 \)).
The reaction is as follows:
\[
\text{CH}_3\text{CONH}_2 \xrightarrow{\text{LiAlH}_4} \text{CH}_3\text{NH}_2
\]
Thus, the product formed is ethylamine.