This is a line printer; named because it prints out an entire line of text at a time. You can really generate a lot of printed matter if doing a core dump (i.e. printing out the entire contents of the mainframe's memory)during troubleshooting. The paper used is tractor fed (pulled through using the punched holes) from the fan folded storage bin.
Earlier PC 'dot matrix' printers operated similarly but printed only one character at a time with a moving print head. The museum doesn't seem to include any of these.