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Ahh, its not just the size that matters, but how you use it.
A lot of the difference in horse power is how the engine is aspirated. Two barrel carbs on old engines were not as efficient as four barrel carbs at getting fuel and air where it needed to be to get properly burned. Fuel injection is more efficient than either, and the way these new engines are injected is much better than they were even 5 years ago. Exhaust also has something to do with it (and I am reaching the limits of my knowledge here).
Chevy (and all the car companies for that matter) have done a great job of bringing power and fuel economy to small engines. (I much prefer to say my car is a 3.6L than a 217). ;-)
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