Can the Model 43 measure AM modulated signals?

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The model 43 is not the best choice to measure AM modulated signals. It will not measure the average power of this waveform accurately due to the fact that the peak to average power ratio of this signal is not zero.

A better choice would be the APM16, or the 5014 equipped with a B series element, probably an APM10B, or equivalent DPM element. This combination will provide the average power of this modulated waveform.