In Elizabethan England, the official religion was Christianity, and the Bible was widely accepted as the ultimate source of truth. The Bible contains many accounts of supernatural events, such as the miracles performed by Jesus Christ and the visions experienced by the prophets. As a result, people in Shakespeare's time were more likely to believe that supernatural things could actually happen.
In addition, the scientific understanding of the natural world was much less advanced in Shakespeare's time than it is today. People did not have a clear understanding of how the world worked, and they were more likely to attribute strange or unusual events to supernatural causes. For example, a sudden storm might be seen as a sign of divine displeasure, or a person who was ill might be thought to be possessed by a demon.
As a result of these factors, stories with supernatural elements were generally accepted as part of reality in Shakespeare's time. They were not seen as fictional or unbelievable, but rather as authentic accounts of things that could actually happen. This is reflected in the way that Shakespeare uses supernatural elements in his own plays. In works such as "A Midsummer Night's Dream" and "The Tempest," Shakespeare incorporates fairies, witches, and other supernatural beings into his stories without any sense of irony or disbelief. These beings are simply part of the world that Shakespeare creates, and they are accepted by the characters in the plays as being real.
Today, stories with supernatural elements are often viewed with more skepticism. This is due in part to the rise of scientific rationalism, which has led people to question the existence of anything that cannot be explained by natural causes. In addition, the increasing secularization of society has made people less likely to believe in religious teachings that support the existence of the supernatural.
As a result of these factors, stories with supernatural elements are often seen as fictional or unbelievable today. They may be enjoyed for their entertainment value, but they are not generally accepted as being true. This is in contrast to Shakespeare's time, when supernatural elements were seen as being an integral part of reality.