Literary Elements, Story Arc / By Robbi Bryant EXPOSITION: Characters and setting are introduced. RISING ACTION: Characters are faced with problems and must continually overcome problems. CLIMAX: The story reaches a critical turning point. Tension has reached its highest point. The problem/conflict is addressed or confronted. FALLING ACTION: Tension eases because the problem/conflict has been resolved (in a good or bad way) and the story is brought to a close. RESOLUTION: Everything has been worked out (for better or worse) and the story ends with a character/narrator reflection.