In Channel Preferences, there's a field "Enable recipient list below for channel entry notification?" But AFAIK that's for when a new entry is published. How about for when an existing entry's Status is changed?
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Yes. Take a look at the add on MX Notify Control http://devot-ee.com/add-ons/mx-notify-control which should allow you to do this.
Alternatively, for even more flexibility take a look at Postmaster http://devot-ee.com/add-ons/postmaster
Audit Pro also does a pretty good job of letting you set granular notifications.