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I think of "literary fiction" as mostly being a description of what a novel is not: not romance, not crime, not science fiction, not fantasy, not zombie-mermaid. "General fiction" might be a better term.
That said, sometimes those "literary" classics can knock you out. I recently read Hadji Murat, the old Tolstoy novel about Russians fighting Muslims. Ripped out of today's headlines, you might say, except it's about 110 years old. And narratively speaking, it gallops along.
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