Sonoma has worked on many, many radios. His advice is as solid as it gets. If you don't have the knowledge or equipment to do the job; then I'd suggest you send it to a shop.
Not the best radio ever made, but it is far from the worst and a keeper if it is working. If you start by testing the AM Regulator you will have started at the most logical place to look. Common fault part with many radios, especially happens when people try to eek out every last bit of modulation.
You can even replace it with a better/upgrade part if you do a little legwork/research of your own to find one. Clean the mode switch, perhaps look for a shorted electrolytic or tantalum cap in that circuit. If it becomes necessary, you might consider re-capping the entire radio, as it is well over thirty years old and past due anyway . . .