How the agent loop works changedagent-sdk/agent-loop
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217217> [!NOTE]
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219> `effort` trades latency and token cost for reasoning depth within each response. [Extended thinking](https://platform.claude.com/docs/en/build-with-claude/extended-thinking) is a separate feature that produces `thinking` blocks in the output, and the `display` field on `ThinkingConfig` for [Python](https://code.claude.com/docs/en/agent-sdk/python.md#thinkingconfig) or [TypeScript](https://code.claude.com/docs/en/agent-sdk/typescript.md#thinkingconfig) controls whether you receive their text. They are independent: you can set `effort: "low"` with extended thinking enabled, or `effort: "max"` without it.
219> `effort` trades latency and token cost for reasoning depth within each response. [Extended thinking](https://platform.claude.com/docs/en/build-with-claude/extended-thinking) produces `thinking` blocks in the output, and the `display` field on `ThinkingConfig` for [Python](https://code.claude.com/docs/en/agent-sdk/python.md#thinkingconfig) or [TypeScript](https://code.claude.com/docs/en/agent-sdk/typescript.md#thinkingconfig) controls whether you receive their text.
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221221Use lower effort for agents doing simple, well-scoped tasks, such as listing files or running a single grep, to reduce cost and latency. Set `effort` in the top-level `query()` options for the [session](https://code.claude.com/docs/en/sub-agents.md#choose-an-effort-level), or per subagent with the `effort` field on [`AgentDefinition`](https://code.claude.com/docs/en/agent-sdk/subagents#agentdefinition-configuration) to override the session level.
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