Literary Fiction, Realism, Modernism
This story is very much about how stories are told. Even though we get a fairly realistic conversation, set in a fairly real place, "Hills Like White Elephants" is an experiment in how a fictional story can be told. This is where Modernism enters into the picture. Hemingway is often considered part of the Modernist school. Though different Modernists go about it in different way, the basic idea was to find new ways to express the new kinds of existence being experienced as a result of both World War I and the advances in technology. Because Hemingway’s experiment in realistic Modernism was successful and influential, we can also call it literary fiction.