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If I remember correctly, it shouldn't spin freely, it should turn with the pulley. If it spun freely, how would it pump water? That being said, it should spin smoothly. If there are any big hitches, then the bearing is bad, and I would trade it in, because you'll just end up replacing it anyways.
You mean that you're holding the pump in your hands and you try to turn the shaft where the pulley mounts? If that's the case, you can turn the shaft but with a good amount of resistance. If the shaft spins relatively freely then the pump seals are gone.