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. 13-7Copyright © 2012 Pearson Education. All rights reserved. 13-7 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