A type of literature that describes imaginary people and events?

The type of literature that describes imaginary people and events is called fiction.

Here's why:

* Fiction is a broad term encompassing stories, novels, plays, and other works that are not based on factual events.

* Imaginary people and events are the defining characteristics of fiction.

* Non-fiction on the other hand, deals with real people, places, and events.

While some fictional works may draw inspiration from real life, the core of fiction is the creation of an imaginative world.