The document discusses amplitude modulation (AM) in which a carrier signal's amplitude is varied in proportion to that of a modulating baseband signal. The modulated signal contains the original baseband information as well as the carrier frequency. In AM, the carrier signal amplitude is increased or decreased based on the amplitude of the baseband signal. The modulated signal can then be demodulated using a simple diode detector circuit to recover the original baseband signal by extracting the signal from the carrier amplitude variations.