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Correct. They pulley does not create horsepower it only reduces the factors that rob hp from the motor. Another way to think of it is that the motor is just an air pump. It sucks, bangs and blows. If you don't change the amount of air it sucks or how big the bang is or how it blows you do no "create" hp.
That said all we really care about is how much hp we have at the wheels not how we get it, and the pulley does work.
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