When we talk about an imaginary scenario, can we use tenses as we normally do to tell the listener the timings of the imaginary events?
By the way, do different subjects like those in the examples (a person and I) affect anything regarding tense use and grammar (I mean, anything else from the subject-verb agreement)?
Example 1 is using present tense to indicate the imaginary present and past tense to indicate the imaginary past.
Example 1:
My friend: What are you doing?
Me:
(Telling my friend an imaginary scenario) A person meets a beautiful girl. He is talking to her. Two days ago, they once met at a library. She was reading a book. He didn't know what the book was about. Now it seems like they can hang out because a moment ago, he found that she was reading a book he likes. They will have a lot to talk about.
Example 2 is using past subjunctive mood to indicate the different timings.
Example 2:
My friend: What are you doing?
Me:
(Telling my friend an imaginary scenario) I met a beautiful girl. I (was or were?) talking to her. Two days ago, we had met at a library. She had been reading a book. I hadn't known what the book had been about. Now it seemed like we could hang out because a moment ago, I just had found that she had been reading a book I like. We would have a lot to talk about.