We are given the polar coordinates \( r = \sqrt{2} \) and \( \theta = \frac{\pi}{4} \), and we need to convert these into Cartesian coordinates.
The formula for converting from polar to Cartesian coordinates is:
\[
x = r \cos{\theta}, \quad y = r \sin{\theta}
\]
Step 1: Substituting the given values for \( r \) and \( \theta \):
\[
x = \sqrt{2} \cos{\left(\frac{\pi}{4}\right)} = \sqrt{2} \cdot \frac{1}{\sqrt{2}} = 1
\]
\[
y = \sqrt{2} \sin{\left(\frac{\pi}{4}\right)} = \sqrt{2} \cdot \frac{1}{\sqrt{2}} = 1
\]
Step 2: Therefore, the Cartesian coordinates are:
\[
(x, y) = (1, 1)
\]