What type of film uses exaggerated visuals and settings to reflect real-life social issues?

The appropriate choice for the type of film that utilizes exaggerated visuals and settings to mirror real-life social issues is a film categorized as dystopian. Dystopian films often depict an exaggerated or distorted view of society, where social issues are amplified to critique and explore themes like oppression, inequality, and the consequences of technological advancements.

These films create a hyperbolic setting that allows filmmakers to comment on current societal problems, drawing parallels to the real world by presenting a future or alternate reality where these issues are exacerbated to the point of absurdity. Characters and plots are typically designed to highlight the struggles and moral dilemmas faced by individuals in such societal structures.

In contrast, documentaries focus on presenting factual information and real-life events without exaggeration, while fantasy films create whimsical and magical worlds that may not directly address real-world issues. Animated films can span various genres and styles; while some may address social issues, they do not inherently utilize exaggeration in the same systematic way that dystopian films do.