You can see this 'suspension of disbelief' in children - they would believe almost everything, their world is a fictive, an imaginary one. And this is due to their innocence and creative mind. This literary device, or technique is a poetic one and meant to appeal to our innocence, imagination and creativity. Getting us to cross boundaries between realism and fantasy, and detach us from our world, is really powerful. You have probably seen science fiction movies, read fairy-tales, gothic stories, fantasy writing (Tolkien's: The Fellowship of the Ring...) Shakespeare's live plays are immersed by this technique.
'Suspension of disbelief' reminds of literary styles such as 'magic realism', a genre originating in Latin America that combines fantastic or dreamlike elements with realism. The difference between the two is that the latter is set in a normal, modern world with authentic descriptions of humans and society, while the former is pure (childish) fantasy.
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