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Yes, you do. The sentence is, in a formal sense, "Everybody is happy", and it would be "Everybody's happy" in almost any setting. The apostrophe just abbreviates 'everybody is'. Everybody is singular, which may seem odd at first. Just test it out. Which sounds better: "Everybody are going to the beach!" or, "Everybody is going to the beach!" The word everybody really means every individual, and it is this idea of individual that carries weight in the word. It refers to any people in some group or other, but taken individually rather than together. In other words, any one [of these people] is happy. Another test-- which sounds better "Is everybody happy??" or "Are everybody happy??" The winner is clear, no dispute.

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9y ago

What else can I help you with?