National Income accounts gnP is one measure of national income but a more precise measure of national income is GNP adjusted for following 1. Depreciation of physical capital results in a loss of income to capital owners, so the amount of depreciation is subtracted from gNp 2 Unilateral transfers to and from other countries can change national income payments of expatriate workers sent to their home countries, foreign aid and pension payments sent to expatriate retirees Copyright 2012 Pearson Education. All rights reserved 13-9Copyright © 2012 Pearson Education. All rights reserved. 13-9 National Income Accounts • GNP is one measure of national income, but a more precise measure of national income is GNP adjusted for following: 1. Depreciation of physical capital results in a loss of income to capital owners, so the amount of depreciation is subtracted from GNP. 2. Unilateral transfers to and from other countries can change national income: payments of expatriate workers sent to their home countries, foreign aid and pension payments sent to expatriate retirees