To answer the OE question......
Muscle cars were regular cars that were equiped with large, powerful engines that often came with higher than normal gear ratios. (But not allways since big blocks had the torque needed to power the cars very well without a high gear ratio.)
IMO, the GTO back in the day may have gotten the title of first muscle car....and with good reason, but, if you go back in time and look at how the even in the 50's the big 3 started getting the engines to produce alot of power by compare to the earlier engines in a big way.
Chrysler came out with the early HEMI's and installed them in the 300's @ 1 hp per cube. That was enormous power back them. This started the HP wars.