Error “package android.support.v7.app does not exist”

I am new to android development, and I have been using the command line tools to create an android project. I followed all the instructions given in the tutorial at android developers. However, they are focused more on IDE users.
When I tried extending my MainActivity class from ActionBarActivity instead of just Activity, it threw the following error.
error: package android.support.v7.app does not exist
It was complaining about this import statement.
import android.support.v7.app.ActionBarActivity;
I made sure to visit the SDK manager, and it says Android Support Library is installed. I am truly stumped on this one, and I would really appreciate any help you guys could give me.

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