What is the difference between placing the 2nd switch at the end of the forward path and after it.
Is Gza calculated for the whole forward path once and that's it?
They are asking you to think about this without doing any calculations. If you think about what is changing you can probably come up with a conclusion, even though you wont know exactly how much it is changing. I also think you can assume that both 'switches' close at the same times and open at the same times. That's not always the case with switching networks, but this is not really the same thing. So think about what might happen when the two are closed and think about what happens when they are both open, for the two different cases. It would help i think to think of that inner gain block as to what response it has to a step input signal, qualitatively.