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terms to describe humor in literature

understatement Expressing an idea with less emphasis or in a lesser degree than is the actual case. The opposite of hyperbole. Understatement is employed for ironic emphasis.
satire manner of writing that mixes a critical attitude with wit and humor in an effort to improve mankind and human institutions
hyperbole an exaggeration in writing used to make a point
figure of speech any phrase or saying that is not meant to be taken literally; this includes idioms, hyperboles, etc.
irony when you expect one thing to happen, but then the opposite happens
idiom a phrase that means one thing word for word (or literally) but suggests a different meaning
exaggeration to make something greater than it actually is; to stretch or magnify the truth
parody A literary or artistic work that imitates the characteristic style of an author or a work for comic effect or ridicule