The answer is B but I need help with what percent the economy shrank by over the four year period.

.O State whether the following statement is true or false, and explain why. If the statement is false, state the true change. If the national economy shrank at an annual rate of 3% per year for four consecutive years, then the economy shrank by 12% over the four-year period. Choose the correct answer below and, if necessary, fill in the answer box to complete your choice. O A. The statement is true because 4x 3% is 12%. O B. The statement is false because each year there is a different reference value. The economy actually shrank by % over the four-year period. (Type an integer or decimal rounded to the nearest tenth as needed.)