HK, it's a mixture of both, really. Both of our parrots repeat what they've been taught or have just learned on their own, but they also make up their own sentences, sometimes quite nonsensical but funny. My Quaker is exceptionally intelligent and can use what words & sentences she knows in the right context for every situation.
You can read more about my Quaker in the thread "why do people say 'bird brain?' Birds are smart!"
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