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Partial answers to the title question:

1) Telescopy: the details that you can still see clearly give you the impression that an object in the distance is much closer than it actually is; 2) reminiscence effect: time markers not only mark periods and dates but they also give rise to reveries in old age � a period that brings up many memories will expand when seen in retrospect and seems t have lasted longer than an equally long period comprising few memories; 3) slowing down of physiological clocks: older people overestimate lasped time intervals