Ericruready, if I may:
It's great that you caught the "most widely read magazines" part. The stimulus is basically
distinguishing between type A magazines, the most widely read, that are currently having financial issues, and type B magazines, that are not the most widely read, and are actually experiencing financial success.
To give you a real world example:
The Economist is a famous and widely read magazine because it covers many different topics in depth. And let's say that the Economist makes all of its money by giving advertisers space to advertise on their magazine. Since The Economist already makes money off of the advertisers, it only charges $2 to its subscribers - the exact cost to print a copy of the magazine.
The Blogger is
not a widely read magazine. Thus, advertisers don't want to advertise in The Blogger since they know not as many people will see their ads as they would if the ad was in the Economist. This is why The Blogger cannot depend on advertisers to make money. Instead, it makes money by charging a subscription fee that is more than the printing cost - so say The Blogger charges $5 when the printing cost is only $2.
Back to the stimulus: because of the recession, the widely read magazines, which the stim says have experienced decreases in revenue,
so much so that they are in financial trouble. Meaning that the decrease in revenue, caused by the recession, is
related to the financial trouble. The decrease in advertising is the
reason why these widely read magazines are going through hard times. If the magazines like The Economist depended on the advertisements only for profit, a decrease in advertising would of course cause a decrease in profit.
But for magazines like The Blogger that
doesn't have ads in their magazines and doesn't depend on them for profit, it
doesn't matter if the advertisements are being hit hard by the recession. The Blogger's revenue factor/source (be it the subscription fee, generous donors, etc) is not being affected.
Your confusion about the whole "recession" aspect of the stimulus arises from a subtle but erroneous assumption the LSAT
wants you to make. The LSAT
wants you to fall into the trap and draw on background knowledge that a "recession" automatically means decreased purchasing power for all consumers.
But the stimulus never said this. It only talked of the relationship between the recession and the advertising revenue. So it is entirely possible that in a recession, consumers subscribe to more magazines while advertisers size down.
Sorry that got so long - I hope it wasn't all in vain and that you got something out of it
