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In this tutorial, MD Tech explains how to undo and redo actions in Microsoft Word. To undo an action, you can use the keyboard shortcut Ctrl + Z or click the back arrow located under the Home tab. For redoing an action, the shortcut is Ctrl + Y, or you can use the right arrow icon that indicates redo. The tutorial emphasizes the straightforward nature of these processes and encourages viewers to utilize these shortcuts for efficient editing.