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Is there any valid reason why an accurate power meter should not bounce all over the place with modulated AM? Consider that modulated AM is nothing more then varying the carrier power in sync with the audio frequency and the bouncing watt meter is exactly what you should expect to see. Looking at the envelope on a scope would confirm that the meter should actually be fluctuating much more and much faster. Because meters and our eyes don't respond at audio frequencies, the PEP meter is dampened to hold the last peak applied for a brief second.