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In reaction to the reign of terror, the revolution entered a third stage. Moderates produced another constitution that set up a five-man Directory and a two-house legislature elected by male citizens of property.

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Peace was made with Prussia and Spain, but was with Austria and Great Britain continued.

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The Directory rose bread prices and caused the hungry sans-culottes to riot, the Directory quickly suppressed them.

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Supporters of a constitutional monarchy won the majority of seats in the legislature. Politicians turned to Napoleon Bonaparte and planned to use him to advance their own goals.