What literary device uses humor, irony, and exaggeration to criticize societal issues?

The correct answer, satire, is a literary device that skillfully employs humor, irony, and exaggeration to address and critique societal issues. Satirists often highlight the flaws and absurdities within society, politics, and human behavior to provoke thought and inspire change. By using wit and clever exaggeration, satire brings attention to serious matters in a way that engages the audience, encouraging them to reconsider their perspectives and the status quo.

While allegory utilizes symbolic figures and actions to convey deeper meanings and moral lessons, it does not primarily focus on humor or irony. Parody mimics and exaggerates another work or genre for comedic effect, but it is not primarily aimed at critiquing societal issues. Hyperbole involves extreme exaggeration for emphasis or effect but does not incorporate the critical or reflective qualities that define satire. Thus, satire combines these elements to deliver pointed social commentary, making it the most fitting answer.