This requires a fairly good understanding of physics for any detailed explanation. Time being relative is a statement that different observers don’t always agree on how much time passes. For any observer, time to them passes “normally” but the universe is such that there is no reason for any two observers to agree that the duration for any event takes the same amount of time. So you can sort of imagine two persons looking at each other for some period. One person might say, “I looked that person for 10 seconds”, while that other person might say, “That person looked at me for 9 seconds”. They are both telling the truth from their perspective because there is no “absolute” time.
This is not a psychological phenomena or any sort of “imagination” or trick. The reason is based on physics of relativity. This phenomena has been measured experimentally. For all “human” level purposes, the differences are so small as to be nearly unmeasurable. But in high gravity differentials or high velocity (very very very high velocities) this effect is measurable.
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