It yours is the traditional 4x4 system, then yes that is normal on dry pavement. You should never use the tradition 4x4 on paved roads as it can cause problems. The 01-02s had the multimode (push button) transfercase which is like an AWD system letting you drive in 4x4 on pavement. This option was on some 2000s, I believe it was only the limiteds though.