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x^2 - y^2 = (x-y)*(x+y)
(1) x+y = 0 => x^2 - y^2 = 0 regardless of the value of (x-y)
(2) x-y = 2. We don't know anything about x+y => insufficient.

Hence the answer is A
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The theory involved is the difference of a square.
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Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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