a) If AA=A, then ∣AA∣=∣A∣. For any x∈A we have ∣xA∣=∣A∣<∞ and xA⊆AA=A, so that xA=A. But then x∈xA, hence e=x−1⋅x∈x−1⋅xA=A. Reciprocally, if e∈A and ∣AA∣=∣A∣, then A=e⋅A⊆AA and since ∣A∣=∣AA∣<∞, it follows that AA=A.
b) Let G=U4={1,i,−1,−i} be the group of all 4th roots of unity. Considering A={i,−i}, we have AA={i2,i⋅(−i),(−i)2}={1,−1}=U2<U4, ∣AA∣=2=∣A∣ and AA=A (furthermore, AA∩A=∅).