The set-up ends with the inciting moment. The inciting moment in One flew over the cuckoo's nest is the scene where McMurphy and the other patients play a basketball game. During this scene it is becomes clear that the rebellious actions of McMurphy have an affect of the other patients as well, because The Chief is listening to him. You can see Nurse Ratched looking down on them from her window, probably thinking about the affect that new patient McMurphy is going to have on the other patients and life in the institution in general.
The inciting moment is the start of the rising action stage. The rising action takes the conflict even further. The story is developing, and so are the characters. In this movie, it means that McMurphy is showing his rebellious side more and more. The conflict between him and Nurse Ratched is getting clearer as well/
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The Chief goes to talk to McMurphy when he's brought onto the ward again, and finds out he has had a frontal lobotomy, and that he is no longer the rebellious man he once knew. He then suffocates him with his pillow, because he realises that McMurphy wouldn't want to live like this. The Chief then lifts up the wash station, throws it through the window and escapes. This is the climax, because it shows that McMurphy has actually achieved what he wanted to achieve: show at least one other person on the ward that he's got his life in his own hands, that anyone is capable of making his own choices. The system should not be allowed to control your life; you should take control into your own hands. McMurphy is dead, but it wasn't for nothing. His spirit lives on in the