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In Excel Magic Trick number 848, the tutorial shows how to create an automatic list of dates based on a selected month and year. The process begins by allowing users to input any month and year, for example, typing "Jan 2011" to generate dates for that month. Data validation is added to enable dropdown selections for both month and year. By using the fill handle, users can easily increment the month from January to December. The tutorial demonstrates data validation steps, including accessing the data ribbon to create a dropdown list that accepts only specific values, ensuring the dates generated correspond to valid inputs. For detailed instructions, viewers can download the provided workbook.