This is the displacement volume of the cylinders caused by the combustion of the fuel. See the related link that I will post (howstuffworks.com).
An example would be a 454 V-8 Chevy engine. This is 454 cubic inches, with each of the 8 cylinders having a volume displacement of 56.75 cubic inches.
American cars might still measure in cubic inches, but most other cars would designate the volume displacement in cc (cubic centimeters) or liters.
In the example of my 454 cubic inch engine above, this converts to 7.44 L (liters) or 7440 cc (cubic centimeters)
Usually smaller engines will designate cc, while larger engines will designate liters
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