(1) So, since the smallest subgroup generated by a subgroup A of G must be A, for G to be generated by A means that A=G. Note that this is only when A is a subgroup.
By definition, the group generated by the subgroup A is A if A is a group. Thus if the group generated by A is G, then A=G whenever A is a subgroup of G.(2) So, for G to be generated by A and B means that there is no subgroup of G which contains A and B other than G.
By definition, the group generated by A and B is the smallest subgroup containing but A and B. Therefore there is no proper subgroup of G which contains both A and B.(3) We can always form what is know as the free product of groups, usually denoted either A*B or AB. Then another way of saying it is that G=<AB>.
Let $ AB =\{ab \mid a\in A, b\in B\} $ It is easy to check that the group generated by A and B is equivalent to the group generated by the set AB. Maybe part of the confusion is that the group generated by A and B would be the group generated by the union of the two groups. This is the only possible meaning of the phrase sense A and B are groups. If they where sets, then it wouldn't be so straightforward. In that case it could mean G=<A>=<B> where A =\= B. But as long as they are groups, they couldn't mean this because then you would have G=A=B.(4) In other words, AB might not necessarily be a subgroup, but you do know that the smallest subgroup containing AB is G. This seems like a generalization of the case when AB=G to the case when AB is not necessarily a subgroup.