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Physiological or biological stress is an organism's response to a stressor such as an environmental condition. Stress is a body's method of reacting to a challenge. According to the stressful event, the body's way to respond to stress is by sympathetic nervous system activation which results in the fight-or-flight response.
As the SNS continues to trigger physical reactions, it causes a wear-and-tear on the body. It's not so much what chronic stress does to the nervous system, but what continuous activation of the nervous system does to other bodily systems that become problematic.