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This video tutorial teaches how to split one paragraph into two smaller paragraphs and merge two small paragraphs into one big paragraph within design ad. To split a paragraph, select it, click on the pencil icon, choose where to split, and click the split icon. To merge paragraphs, select the paragraph, click the pencil icon, then the merge with next icon on the top bar to combine it with the paragraph below. Moving paragraphs up and down is done by clicking on the arrow icons. This process allows for easy splitting and merging of paragraphs within designer.