Output $ action in a Merge expression in Sql server 2008?

what is the use of the output $ action in a Merge statement in Sql server 2008?

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merge tsql sql-server-2008
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Omniscient MSDN says

$ action

Available only to the MERGE operator. Specifies a column of type nvarchar (10) in the OUTPUT clause of the MERGE statement that returns one of three values ​​for each row: "INSERT", "UPDATE", or "DELETE", according to the action that was performed on that row.

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