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In Word, you can easily undo actions by using the undo button at the top of the program window or by pressing Ctrl + Z on the keyboard. This feature allows you to quickly undo any changes you make, whether it's adding text or formatting. Pressing Ctrl + Z simultaneously will undo the most recent action, making it a convenient way to revert back to previous versions of your document. This function applies to various actions in Word, not just typing, making it a useful tool for editing and revising your work.