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Actually, according to mustangspecs.com, the 1974 Mustang II was the only year without an offered V-8. Base engine from '74 through 1993 was an L4. There were even some years without a V-6 option!
they had a detuned V-8 through the mid or late 70's to early 80's. '82 or '83 they started putting in the High Output 5.0L. That's when they brought the power back up. Ford kept the rated HP #'s down though on the 5.0 HO. They put out more than what Ford claimed and no one knows why. Lots of theories but don't really no which to follow.