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.