How does your brain produce dreams while you are sleeping?
Nobody knows precisely, but the general answer is that just because you are
sleeping, doesn't mean that all of your brain is shut down. Far from it. The brain
is very active electrically and chemically during sleep, and that is how it can produce
dreams. Just like the brain can carry out many functions that you are not aware of,
such as giving you the feeling of thirst when your blood doesn't have enough water in it,
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Update: June 2012