In Lucerne, the DM may choose to scale time appropriately for the situation.
For more intricate and involved situations, playing out a scene in near real time, the DM describing each thing step by step as it happens, may be appropriate. For less involved situations, like searching out a room in a ruin, describing by the minute may be more useful. For longer, more drawn out scenarios, such as traversing a wilderness, or a player character doing some extensive shopping, an entire hour or more may pass, skimmed through in narration. For the longest of journeys, entire days may pass by, with the DM quickly passing through the uneventful parts of your adventure.
Time is measured in the standard scale of seconds, minutes, hours, and days, with 60 seconds making up a minute, 60 minutes making up an hour, and 24 hours making up a day.
In combat, time is broken into rounds, which are 6 seconds long. Within a round, each creature has a turn, in a particular order, called Initiative. See: Turn Order and Initiative.