The activation-synthesis model, proposed by J. Allan Hobson and Robert McClarley back in the 1970s, suggests that, as circuits in the brain become activated during REM sleep, areas of the limbic system including the amygdala and hippocampus (the parts of the brain involved in emotions, sensations and memories) also becomes active. The brain synthesizes and subjectively interprets this internal brain activity, and attempts to find meaning in the random signals, the results of which are what we call dreams.
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