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In this tutorial, MD Tech demonstrates how to undo and redo actions in Microsoft Word. To undo an action, you can either press the Control + Z keyboard shortcut or click the back arrow in the toolbar, which is located under the Home tab. For redoing an action, the Control + Y shortcut can be used, or you can click the right arrow icon in the toolbar. The tutorial emphasizes the simplicity of these actions and encourages viewers to utilize these shortcuts for efficient text editing.