A cavity-modified master equation is derived for a coherently driven t
wo-level atom coupled to a single-mode cavity in the bad cavity limit,
in which the cavity frequency is tuned to either the center or one of
the sidebands of the Mellow triplet. The atomic populations in both t
he bare- and dressed-state representations are analyzed in terms of th
e cavity-modified transition rates. In the bare-state basis, the role
of the cavity may be interpreted as enhancing the stimulated absorptio
n of the atom while suppressing the stimulated emission. The bare-stat
e population may thus be inverted under appropriate conditions. The dr
essed-state inversion, however, originates from the enhancement of the
atom-cavity interaction when the cavity is resonant with the atomic d
ressed-state transition. We show that two-phase quadratures of the ato
mic polarization decay at different rates. The decay of the in-phase (
or out-of-phase) quadrature may be greatly inhibited as the driving in
tensity increases, depending on the cavity resonant frequency. The spe
ctrum of the atomic fluorescence emitted out the side of the cavity is
also studied. The spectral profiles are sensitive to the cavity frequ
ency. When the cavity frequency is tuned to the center of the Mellow r
esonances, the fluorescence spectrum is;symmetrical with three peaks w
hose linewidths and heights are intensity dependent. When the cavity f
requency is tuned to one of the Mellow sidebands, however, it is asymm
etric, and the central peak and the sideband on resonance with the cav
ity can be significantly suppressed for strong driving fields. All thr
ee spectral lines can be narrowed by increasing the Rabi frequency. Th
e physics of these striking spectral features is explored in the dress
ed-state basis. We also investigate the probe absorption spectrum. Whe
n the cavity frequency is tuned to the center of the Mellow fluorescen
ce triplet, the central component exhibits a Lorentzian line shape, wh
ile the side bands show the Rayleigh-wing line shape. Probe gain may o
ccur at Line center due to cavity-induced, bare-state population inver
sion. When the cavity is tuned to resonance with one sideband, only tw
o sidebands, with Lorentzian profiles, dominate. Gain can occur at the
sideband far off resonant with the cavity. The sideband gain is a con
sequence of an unbalanced dressed-state population distribution. [S105
0-2947(98)07706-3].