The _____ theory of dreaming proposes that dreaming occurs when the cerebral cortex synthesizes neural signals generated from activity in the lower part of the brain.

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Answer:

The correct answer is- activation synthesis theory

Explanation:

The activation-synthesis theory tells us about the role of neuron in dream production during sleep. It was first proposed in 1977 by Allan Hobson and Robert McCarley which was psychiatrists at Harvard University.

This theory says that in REM sleep some neurons in the lower brains for example in the brain stem randomly activates due to change in neural signals and dream occurs when the cerebral cortex tries to interpret the meaning of these neuron signal changes.  

So the correct answer to this question is- activation-synthesis theory.