1. 2. In which line (or lines) of Table 5.4

(the income approach) would the value of each of the following be counted in the macroeconomic accounts of the euro area? If it is part of “net income flows from the rest of the world,” explain whether it reflects domestic (or foreign)

production and whether it reflects domestic (or foreign) income. “Not counted in any category” is also an option.

a. Wages paid by your local supermarket to its employees

b. Profits received by a German car manufacturer from its factory in China

c. Business spending to replace worn-out equipment

d. Wages paid by a German car manufacturer to the employees of its factory in China

e. Profits received by a Japanese automaker from its factory in Belgium